Condensed balance sheet and income statement data for Jergan Corporation are presented here.
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.
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.
