Condensed balance sheet and income statement data for Jernigan Corporation are p
ID: 2488433 • 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
$ 31,605
$ 21,605
$ 19,605
51,605
46,605
49,605
95,099
100,099
69,099
60,099
75,099
50,099
500,000
370,000
358,000
$738,408
$613,408
$546,408
$ 86,605
$ 81,605
$ 71,605
150,099
90,099
55,099
325,099
315,099
305,099
176,605
126,605
114,605
$738,408
$613,408
$546,408
JERNIGAN CORPORATION
Income Statements
For the Years Ended December 31
2014
2013
$745,099
$605,099
41,605
31,605
703,494
573,494
430,099
355,099
273,395
218,395
181,605
151,605
$ 91,790
$ 66,790
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$ 31,605
$ 21,605
$ 19,605
Accounts receivable (net)51,605
46,605
49,605
Other current assets95,099
100,099
69,099
Investments60,099
75,099
50,099
Plant and equipment (net)500,000
370,000
358,000
$738,408
$613,408
$546,408
Current liabilities$ 86,605
$ 81,605
$ 71,605
Long-term debt150,099
90,099
55,099
Common stock, $10 par325,099
315,099
305,099
Retained earnings176,605
126,605
114,605
$738,408
$613,408
$546,408
Explanation / Answer
Profit margin.:
= Net Income / Sales x 100
2013: $66,790/605,099 x 100=11.04%
2014: $91,790/745,099 x100=12.32%
Gross profit rate.
= Gross Profit/ Sales x 100
2013: $218,395/605,099 x 100=36.09%
2014: $273,395/745,099 x100=36.69%
-------------------------------------------------------------------------------------------------------------------
Avg Total Assets:
=Beginning Assets + Ending Assets/2
2014:
=546,408+613,408/2
=$579,908
2015:
=613,408 +738,408/2
=$675,908
Asset turnover.
=Net Sales/Avg Total Assets
2014:
=605,099/$579,908
1.04
2015:
=745,099/675,908
1.10
No of shares out standing
= Common stock / Par value of Share
2014:
=315,099/10
=31,509.9
2015:
=325,099/10
=32,509.9
2015:
Earnings per share.
=PAT/ No of Shares outstanding
2014:
=66,790/31,509.9
=2.12
2015:
=91,790/32,509.9
=2.82
------------------------------------------------------------------------------------------------------------------------------
Price-earnings ratio.
=Market Price/ EPS
2014:
=10.25/2.12
=4.84
2015:
=7.33/2.82
=2.60
Dividend Paid= Beginning Retained Earnings+ Net income – Ending Retained Earnings
2014:
=114,605+66,790-126,605
=54,790
2015:
=126,605+91,790-181,605
=36,790
Payout ratio.
= Dividend Paid/ Net income
2014:
54,790/66,790 x100
=82.03%
2015:
36,790/91,790 x100
=33.81%
Debt to assets ratio.
=Total liabilities/ TotalAssets
2014:
=$81,605+90,099/613,408
=0.28 or 28%
2015:
=86,605+150,099/738,408
=0.32 or 32%
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