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The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 1. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) 2019 2020 (1) Profit margin (2) Gross profit rate % (3) Asset turnover times

The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 1. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) 2019 2020 (1) Profit margin (2) Gross profit rate % (3) Asset turnover times

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 1. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) 2019 2020 (1) Profit margin % (2) Gross profit rate % (3) Asset turnover times (4) Earnings per share $ 2$ (5) Price-earnings ratio times (6) Payout ratio % (7) Debt to assets ratio
Transcribed Image Text:The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 1. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) 2019 2020 (1) Profit margin % (2) Gross profit rate % (3) Asset turnover times (4) Earnings per share $ 2$ (5) Price-earnings ratio times (6) Payout ratio % (7) Debt to assets ratio
Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 30,400 $ 17,100 $ 18,300 Accounts receivable (net) 50,600 45,100 48,600 Other current assets 89,600 95,000 64,700 Investments 55,100 70,500 45,200 Plant and equipment (net) 499,800 369,700 358,700 $725,500 $597,400 $535,500 Current liabilities $84,300 $80,500 $69,800 Long-term debt 144,400 84,500 50,200 Common stock, $10 par 384,000 321,000 304,000 Retained earnings 112,800 111,400 111,500 $725,500 $597,400 $535,500 Jergan Corporation Income Statement For the Years Ended December 31 2019 Sales revenue $738,000 $606,600 Less: Sales returns and allowances 40,800 31,000 Net sales 697,200 575,600 Cost of goods sold 425,600 369,000 Gross profit 271,600 206,600 Operating expenses (including income taxes) 180,964 149,040 Net income $ 90,636 $ 57,560 Additional information: The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 202O, respectively. 1. 2. You must compute dividends paid. All dividends were paid in cash. (a) 19 and 2020. (Round Asset turnover and Earnings per Compute the following ratios share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
Transcribed Image Text:Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 30,400 $ 17,100 $ 18,300 Accounts receivable (net) 50,600 45,100 48,600 Other current assets 89,600 95,000 64,700 Investments 55,100 70,500 45,200 Plant and equipment (net) 499,800 369,700 358,700 $725,500 $597,400 $535,500 Current liabilities $84,300 $80,500 $69,800 Long-term debt 144,400 84,500 50,200 Common stock, $10 par 384,000 321,000 304,000 Retained earnings 112,800 111,400 111,500 $725,500 $597,400 $535,500 Jergan Corporation Income Statement For the Years Ended December 31 2019 Sales revenue $738,000 $606,600 Less: Sales returns and allowances 40,800 31,000 Net sales 697,200 575,600 Cost of goods sold 425,600 369,000 Gross profit 271,600 206,600 Operating expenses (including income taxes) 180,964 149,040 Net income $ 90,636 $ 57,560 Additional information: The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 202O, respectively. 1. 2. You must compute dividends paid. All dividends were paid in cash. (a) 19 and 2020. (Round Asset turnover and Earnings per Compute the following ratios share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
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