P13.3A (LO 3) Writing Condensed balance sheet and income statement data for Jergan Corporation are presented...
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P13.3A (LO 3) Writing Condensed balance sheet and income statement data for Jergan Corporation are presented here. DOO DES Cash Accounts receivable (net). Other current assets Investments Plant and equipment (net) Current liabilities. Long-term debt Common stock, $10 par Retained earnings Net sales Cost of goods sold Jergan Corporation Balance Sheets December 31 Sales revenue Less: Sales returns and allowances 2020 $ 30,000 50,000 90,000 55,000 500,000 $725,000 $ 85,000 145,000 320,000 175,000 $725,000 2019 $ 20,000 45,000 Gross profit Operating expenses (including income taxes) Net income 95,000 70,000 370,000 $600,000 Jergan Corporation Income Statements For the Years Ended December 31 $ 80,000 85,000 310,000 125,000 $600,000 2020 $740,000 40,000 700,000 425,000 275,000 180,000 $ 95.000 2018 $ 18,000 48,000 64,000 45,000 358,000 $533,000 $ 70,000 50,000 300,000 113,000 $533,000 2019 $600,000 30,000 570,000 350,000 220,000 150,000 $ 70,000 Perform ratio analysis, and discuss changes in financial position and operating results. Excel Additional information: 1. The market price of Jergan s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Instructions a. Compute the following ratios for 2019 and 2020. 1. Profit margin. 2. Gross profit rate. 3. Asset turnover. 4. Earnings per share. 5. Price-earnings ratio. 6. Payout ratio. 7. Debt to assets ratio. Love b. Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2019 to 2020 of Jergan Corporation. P13.3A (LO 3) Writing Condensed balance sheet and income statement data for Jergan Corporation are presented here. DOO DES Cash Accounts receivable (net). Other current assets Investments Plant and equipment (net) Current liabilities. Long-term debt Common stock, $10 par Retained earnings Net sales Cost of goods sold Jergan Corporation Balance Sheets December 31 Sales revenue Less: Sales returns and allowances 2020 $ 30,000 50,000 90,000 55,000 500,000 $725,000 $ 85,000 145,000 320,000 175,000 $725,000 2019 $ 20,000 45,000 Gross profit Operating expenses (including income taxes) Net income 95,000 70,000 370,000 $600,000 Jergan Corporation Income Statements For the Years Ended December 31 $ 80,000 85,000 310,000 125,000 $600,000 2020 $740,000 40,000 700,000 425,000 275,000 180,000 $ 95.000 2018 $ 18,000 48,000 64,000 45,000 358,000 $533,000 $ 70,000 50,000 300,000 113,000 $533,000 2019 $600,000 30,000 570,000 350,000 220,000 150,000 $ 70,000 Perform ratio analysis, and discuss changes in financial position and operating results. Excel Additional information: 1. The market price of Jergan s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Instructions a. Compute the following ratios for 2019 and 2020. 1. Profit margin. 2. Gross profit rate. 3. Asset turnover. 4. Earnings per share. 5. Price-earnings ratio. 6. Payout ratio. 7. Debt to assets ratio. Love b. Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2019 to 2020 of Jergan Corporation.
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Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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