Question
In: Accounting
P13-3A Perform ratio analysis, and discuss change in financial position and operating results Condensed balance sheet...
| P13-3A 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 2012, | ||||||||||
| 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 P13-3A, answer 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. | |||||||||||
Solutions
ekkarill92 answered 8 months agoRelated Solutions
P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow: E-PERFORM, INC....
P13-12A The income statement and unclassified
statement of financial position for E-Perform, Inc. follow:
E-PERFORM, INC.
Statement of Financial Position
December 31
2018
2017
Assets
Cash
$ 97,800
$ 48,400
Held for trading investments
128,000
114,000
Accounts receivable
75,800
43,000
Inventory
122,500
92,850
Prepaid expenses
18,400
26,000
Equipment
270,000
242,500
Accumulated depreciation
(50,000)
(52,000)
Total assets
$662,500
$514,750
Liabilities and Shareholders' Equity
Accounts payable
$ 93,000
$ 77,300
Accrued liabilities
11,500
7,000
Bank loan payable
110,000
150,000
Common shares
200,000
175,000
Retained...
P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow: E-PERFORM, INC....
P13-12A The income statement and unclassified
statement of financial position for E-Perform, Inc. follow:
E-PERFORM, INC.
Statement of Financial Position
December 31
2018
2017
Assets
Cash
$ 97,800
$ 48,400
Held for trading investments
128,000
114,000
Accounts receivable
75,800
43,000
Inventory
122,500
92,850
Prepaid expenses
18,400
26,000
Equipment
270,000
242,500
Accumulated depreciation
(50,000)
(52,000)
Total assets
$662,500
$514,750
Liabilities and Shareholders' Equity
Accounts payable
$ 93,000
$ 77,300
Accrued liabilities
11,500
7,000
Bank loan payable
110,000
150,000
Common shares
200,000
175,000
Retained...
Complete P9-3 using the template provided here. P9-3 Perform ratio analysis, and discuss change in financial...
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...
Assignment 3: P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow:...
Assignment 3:
P13-12A The income statement and unclassified
statement of financial position for E-Perform, Inc. follow:
E-PERFORM, INC.
Statement of Financial Position
December 31
2018
2017
Assets
Cash
$ 97,800
$ 48,400
Held for trading investments
128,000
114,000
Accounts receivable
75,800
43,000
Inventory
122,500
92,850
Prepaid expenses
18,400
26,000
Equipment
270,000
242,500
Accumulated depreciation
(50,000)
(52,000)
Total assets
$662,500
$514,750
Liabilities and Shareholders' Equity
Accounts payable
$ 93,000
$ 77,300
Accrued liabilities
11,500
7,000
Bank loan payable
110,000
150,000
Common shares
200,000
...
question 3. P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow:...
question 3. P13-12A The income statement and
unclassified statement of financial position for E-Perform, Inc.
follow:
E-PERFORM, INC.
Statement of Financial Position
December 31
2018
2017
Assets
Cash
$ 97,800
$ 48,400
Held for trading investments
128,000
114,000
Accounts receivable
75,800
43,000
Inventory
122,500
92,850
Prepaid expenses
18,400
26,000
Equipment
270,000
242,500
Accumulated depreciation
(50,000)
(52,000)
Total assets
$662,500
$514,750
Liabilities and Shareholders' Equity
Accounts payable
$ 93,000
$ 77,300
Accrued liabilities
11,500
7,000
Bank loan payable
110,000
150,000
Common shares
200,000
...
Problem 14-3A a Condensed balance sheet and income statement data for Jergan Corporation are presented here....
Problem 14-3A a
Condensed balance sheet and income statement data for Jergan
Corporation are presented here.
Jergan Corporation
Balance Sheets
December 31
2020
2019
2018
Cash
$ 30,500
$ 17,800
$ 17,700
Accounts receivable (net)
50,400
45,200
48,800
Other current assets
89,300
96,000
65,000
Investments
55,400
70,000
45,800
Plant and equipment (net)
499,100
369,200
358,400
$724,700
$598,200
$535,700
Current liabilities
$85,200
$79,300
$70,600
Long-term debt
145,300
84,500
50,700
Common stock, $10 par
330,000
316,000
310,000
Retained earnings
164,200
118,400
104,400...
Ratio Analysis of Comparative Financial Statements A comparative income statement and balance sheet of Miller Electronics...
Ratio Analysis of Comparative Financial Statements
A comparative income statement and balance sheet of Miller
Electronics Corporation for the last two years are shown.
Miller Electronics Corporation
Comparative Income Statement
For Years Ended December 31, 20-2 and 20-1
20-2
20-1
Net Sales (all on account)
$646,120
$414,520
Cost of goods sold
384,590
253,000
Gross profit
$261,530
$161,520
Administrative expenses
$63,249
$41,647
Selling expenses
66,183
44,283
Total operating expenses
$129,432
$85,930
Operating income
$132,098
$75,590
Interest expense
1,316
1,222
Income before...
Fill out the following balance sheet and conduct a ratio analysis. Discuss your reasons for granting...
Fill out the following balance sheet and conduct a ratio
analysis. Discuss your reasons for granting or denying an
additional loan.
Assets
Liabilities
Current Assets
$40,000
Current Liabilities
$60,000
Non-current Assets
Non-current Liabilities
$50,000
Total Liabilities
Owner Equity
Total Assets
Liabilities plus Equity
$280,000
Problem 18-3A Condensed balance sheet and income statement data for Landwehr Corporation appear below. LANDWEHR CORPORATION...
Problem 18-3A
Condensed balance sheet and income statement data for Landwehr
Corporation appear below.
LANDWEHR CORPORATION
Balance Sheets
December 31
2018
2017
2016
Cash
$ 25,800
$ 17,600
$ 18,700
Accounts receivable (net)
50,500
44,200
47,100
Other current assets
89,600
94,900
63,900
Investments
75,300
71,000
45,100
Plant and equipment (net)
400,500
370,000
358,500
$641,700
$597,700
$533,300
Current liabilities
$75,500
$79,800
$69,400
Long-term debt
79,300
84,100
50,300
Common stock, $10 par
368,000
316,000
304,000
Retained earnings
118,900
117,800
109,600
$641,700
$597,700...
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below....
A condensed balance sheet for Simultech Corporation and a
partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing
each missing line item as a percentage of total assets.
2-a. What percentage of Simultech’s total assets
relate to inventory?
2-b. What percentage of Simultech’s total assets
relate to property and equipment?
2-c. Which of these two asset groups is more
significant to Simultech’s business?
3. What percentage of Simultech’s assets is
financed by total stockholders'...
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