Condensed balance sheet and income statement data for Jernigan Corporation are p
ID: 2471466 • Letter: C
Question
Condensed balance sheet and income statement data for Jernigan Corporation are presented here. JERNIGAN CORPORATION Balance Sheets December 31 2014 2013 2012 Cash $ 31,848 $ 21,848 $ 19,848 Accounts receivable (net) 51,848 46,848 49,848 Other current assets 96,111 101,111 70,111 Investments 61,111 76,111 51,111 Plant and equipment (net) 500,000 370,000 358,000 $740,918 $615,918 $548,918 Current liabilities $ 86,848 $ 81,848 $ 71,848 Long-term debt 151,111 91,111 56,111 Common stock, $10 par 326,111 316,111 306,111 Retained earnings 176,848 126,848 114,848 $740,918 $615,918 $548,918 JERNIGAN CORPORATION Income Statements For the Years Ended December 31 2014 2013 Sales revenue $746,111 $606,111 Less: Sales returns and allowances 41,848 31,848 Net sales 704,263 574,263 Cost of goods sold 431,111 356,111 Gross profit 273,152 218,152 Operating expenses (including income taxes) 181,848 151,848 Net income $ 91,304 $ 66,304 Additional information: 1. The market price of Jernigan’s common stock was $7.21, $11.23, and $7.37 for 2012, 2013, and 2014, respectively. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2013 and 2014.
Explanation / Answer
EPS for 2013 =Net income /number os shares
= 66304 / 31611.1 = 2.0975
for 2014 = 91304/32611.1=2.7998
Dividend paid = Beginning RE +net income -RE at ned
for 2013 = 114848+66304-126848=54304
2014 = 126848+91304-176848=41304
Formula 2014 2013 Gross profit rate Gross profit /net sales 273152/704263=38.79% 218152/574263=37.99% PE ratio MPS/EPS 7.37/2.7998 = 2.63 11.23/2.0975=5.35 Payout ratio Dividend/net income 41304/91304=45.24% 54304/66304 = 81.90% debt to asset ratio Total liabilities /total asset (86848+151111)/740918=32.12% (81848+91111)/615918 = 28.08%Related Questions
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