Complete P9-3 using the template provided here.

P9-3 Perform ratio analysis, and discuss change in financial position and operating results
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
	JERGAN CORPORATION
	Balance Sheet
	December 31
				2017	2016	2015
	Cash			$30,000	$20,000	$18,000
	Accounts receivable (net)			50,000	45,000	48,000
	Other current assets			90,000	95,000	64,000
	Investments			55,000	70,000	45,000
	Plant and equipment (net)			500,000	370,000	358,000
				$725,000	$600,000	$533,000
	Current liabilities			$85,000	$80,000	$70,000
	Long-term debt			145,000	85,000	50,000
	Common stock, $10 par			320,000	310,000	300,000
	Retained Earnings			175,000	125,000	113,000
				$725,000	$600,000	$533,000
	JERGAN CORPORATION
	Income Statement
	For the Year Ended December 31
					2017	2016
	Sales revenue				$740,000	$600,000
	Less: Sales return and allowances				40,000	30,000
	Net sales				700,000	570,000
	Cost of goods sold				425,000	350,000
	Gross profit				275,000	220,000
	Operating expenses (including income taxes)				180,000	150,000
	Net income				95,000	70,000
Additional information:
1.	The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2015,
	2016, and 2017, respectively.
2.	You must compute dividends paid. All dividends were paid in cash.
Instructions
(a)	Compute the following ratios for 2016 and 2017.
	(1) Profit margin.			5. Price-earnings ratio.
	(2) Gross profit rate.			6. Payout ratio.
	(3) Asset turnover.			7. Debt to assets ratio.
	(4) Earnings per share.
(b)	Based on the ratios calculated, discuss briefly the improvement or lack thereof in the
	financial position and operating results from 2016 to 2017 of Jergan Corporation.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a)(1)	Profit margin
				2017	2016
	Net income			Value	Value
	Net sales			Value	Value
	Profit margin			?	?
(a)(2)	Gross profit rate
				2017	2016
	Gross profit			Value	Value
	Net sales			Value	Value
	Gross profit rate			?	?
(a)(3)	Asset turnover
				2017	2016
	Total assets, 2017			Value
	Total assets, 2016			Value	Value
	Total assets, 2015				Value
	Average total assets			?	?
				2017	2016
	Net sales			Value	Value
	Average total assets			Value	Value
	Asset turnover			?	?
(a)(4)	Earnings per share
				2017	2016
	Common shares outstanding, 2017			Value
	Common shares outstanding, 2016			Value	Value
	Common shares outstanding, 2015				Value
	Average common shares outstanding			?	?
				2017	2016
	Net income - Pfd. Dividends			Value	Value
	Average common shares outstanding			Value	Value
	Earnings per share			?	?
(a)(5)	Price-earnings ratio
				2017	2016
	Stock price per share			Value	Value
	Earnings per share			Value	Value
	Price-earnings ratio			?	?
(a)(6)	Payout ratio
				2017	2016
	Prior year's retained earnings			Value	Value
	Plus: current year net income			Value	Value
	Less: current year's retained earnings			Value	Value
	Cash dividends declared			?	?
				2017	2016
	Cash dividends declared (common)			Value	Value
	Net income			Value	Value
	Payout ratio			?	?
(a)(7)	Debt to assets ratio
				2017	2016
	Current Liabilities			Value	Value
	Long-term debt			Value	Value
	Total liabilities			?	?
	Total assets			Value	Value
	Debt to assets ratio			?	?
After you have completed P9-3, consider the additional question.
1.	Assume that 2017 net income and total assets changed to $87,000 and total assets to
	$700,000. Show the impact of these changes on the ratios.