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The following financial statements for Jordan Corporation should be used to calculate the following ratios.
Jordan Corporation
Balance Sheets
December 31, 2016 and 2015
Assets
Current Assets:
Cash
mce_markernbsp; 250,000
mce_markernbsp; 275,000
Accounts Receivable
400,000
450,000
Inventory
600,000
500,000
Prepaid Expenses
25,000
30,000
Total Current Assets
1,275,000
1,255,000
Property, Plant and Equipment:
Equipment
1,000,000
900,000
Less Accumulated Depreciation
(200,000)
(175,000)
Total Property, Plant and Equipment
800,000
725,000
Total Assets
mce_markernbsp; 2,075,000
mce_markernbsp; 1,980,000
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable
mce_markernbsp; 430,000
mce_markernbsp; 400,000
Notes Payable
100,000
80,000
Wages Payable
20,000
Total Current Liabilities
560,000
Long Term Liabilities:
200,000
180,000
Bonds Payable
150,000
Total Long Term Liabilities
350,000
380,000
Total Liabilities
910,000
880,000
Stockholders' Equity
Common Stock
Additional Paid in Capital
Retained Earnings
565,000
Total Stockholders' Equity
1,165,000
1,100,000
Total Liabilities and Equity
Income Statement
Years Ended December 31, 2016 and 2015
Sales
mce_markernbsp; 3,500,000
mce_markernbsp; 3,300,000
Cost of Goods Sold
1,200,000
1,150,000
Gross Profit
2,300,000
2,150,000
Operating Expenses
1,800,000
1,700,000
Operating Income
Interest Expense
Income Before Taxes
475,000
420,000
Income Taxes
Net Income
mce_markernbsp; 375,000
mce_markernbsp; 340,000
There are 100,000 shares outstanding at the end of both 2016 and 2015.
Market price per share on December 31, 2016 was $45.00 per share.
Company paid $100,000 in dividends during 2016.
Compute the following ratios:
Liquidity:
Solvency:
Profitability:
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