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

Question

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

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%.)

1. The market price of Jernigan’s common stock was $6.80, $9.38, and $8.18 for 2012, 2013, and 2014, respectively. 2. You must compute dividends paid. All dividends were paid in cash. JERNIGAN CORPORATION Balance Sheets December 31 2014 2013 2012 Cash Accounts receivable (net) Other current assets nvsimenis Plant and equipment (net) $31,572 21,572 19,572 51,572 92,728 57,728 500,000 46,572 97,728 72,728 370,000 $733,600 $608,600 $541,600 $86,572 81,572 71,572 87,728 322,728 312,728302,728 126,572 $733,600 $608,600 $541,600 49,572 66,728 47,728 358,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 147,728 52,728 176,572126572 114,572 JERNIGAN CORPORATION Income Statements For the Years Ended December 31 2014 2013 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating ex Net income $742,728 $602,728 31,572 701,156 571,156 427,728 352,728 273,428 218,428 151,572 $91,856$ 66,856 41,572 penses (including income taxes) 181,572 -

Explanation / Answer

2013 Asset turnover Ratio = Net sales / Average total asset                                            = 571156 / 575100                                            = 0.99 Average total asset = ( 608600 + 541600) / 2                                         = 575100 Earning per share = Net Income / weighted average common shares outstanding 2014 Earning per share = 91856 / 31273 302728 12 302728                                     = 2.94 10000 6 5000 weighted average 307728 2013 Earning per share = 66856 / 30773 2.172554                                      = 2.17 weighted average 302728 12 302728 10000 6 5000 weighted average 307728 Price earning ratio = Market value per share / earning per share 2013 price earning ratio = 9.38 /2.17                                       = 4.32

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