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Condensed balance sheet and income statement data for Jernigan Corporation are p

ID: 2471567 • 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

$ 31,159

$ 21,159

$ 19,159

51,159

46,159

49,159

96,556

101,556

70,556

61,556

76,556

51,556

500,000

370,000

358,000

$740,430

$615,430

$548,430

$ 86,159

$ 81,159

$ 71,159

151,556

91,556

56,556

326,556

316,556

306,556

176,159

126,159

114,159

$740,430

$615,430

$548,430

JERNIGAN CORPORATION
Income Statements
For the Years Ended December 31

2014

2013

$746,556

$606,556

41,159

31,159

705,397

575,397

431,556

356,556

273,841

218,841

181,159

151,159

$ 92,682

$ 67,682


Additional information:


(a) Compute the following ratios for 2013 and 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

2014

2013

JERNIGAN CORPORATION
Balance Sheets
December 31

2014

2013

2012

Cash

$ 31,159

$ 21,159

$ 19,159

Accounts receivable (net)

51,159

46,159

49,159

Other current assets

96,556

101,556

70,556

Investments

61,556

76,556

51,556

Plant and equipment (net)

500,000

370,000

358,000

$740,430

$615,430

$548,430

Current liabilities

$ 86,159

$ 81,159

$ 71,159

Long-term debt

151,556

91,556

56,556

Common stock, $10 par

326,556

316,556

306,556

Retained earnings

176,159

126,159

114,159

$740,430

$615,430

$548,430

Explanation / Answer

2014 2013 2014 2013 Profit margin. Net income/ sales 92682/705397 67682/575397 13.14% 11.76% Gross profit rate. gross profit/ sales 273841/705397 =218841/575397 38.82% 38.03% Asset turnover. Sales/Average asset =705397/(740430+615430)/2 =575397/(615430+548430)/2 1.04 0.99 Earnings per share. Net income/Nof shares =92682/32655.6 67682/31655.6 2.84 2.14 Price-earnings ratio. Price/Eps 7.99/2.84 10.44/2.14 2.81 4.88 Payout ratio. Dividend/net income 42682/92682 46.05% 82.27% Debt to assets ratio. debt/Total asset (86159+151556)/740430 (81159+91556)/615430 32.10% 28.06% 2014 2013 Change in Re Retained earnings 176159 126159 50000 92682 Dividend 92682-50000 42682 2013 2012 Change in Re Retained earnings 126159 114159 12000 Net Income 67682 Dividend 67682-12000 55682

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