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

ID: 2500232 • 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

$ 31,442

$ 21,442

$ 19,442

51,442

46,442

49,442

92,003

97,003

66,003

57,003

72,003

47,003

500,000

370,000

358,000

$731,890

$606,890

$539,890

$ 86,442

$ 81,442

$ 71,442

147,003

87,003

52,003

322,003

312,003

302,003

176,442

126,442

114,442

$731,890

$606,890

$539,890

JERNIGAN CORPORATION
Income Statements
For the Years Ended December 31

2014

2013

$742,003

$602,003

41,442

31,442

700,561

570,561

427,003

352,003

273,558

218,558

181,442

151,442

$ 92,116

$ 67,116


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

$ 31,442

$ 21,442

$ 19,442

Accounts receivable (net)

51,442

46,442

49,442

Other current assets

92,003

97,003

66,003

Investments

57,003

72,003

47,003

Plant and equipment (net)

500,000

370,000

358,000

$731,890

$606,890

$539,890

Current liabilities

$ 86,442

$ 81,442

$ 71,442

Long-term debt

147,003

87,003

52,003

Common stock, $10 par

322,003

312,003

302,003

Retained earnings

176,442

126,442

114,442

$731,890

$606,890

$539,890

Explanation / Answer

2014 2013 Profit margin. Net Income /Net sales 92116/700561 67116/570561 Profit Margin 13.15% 11.76% Gross Profit Ratio =grossprofit/sales 273558/700561 218558/570561 Gross profit Ratio 39.05% 38.31% Asset Turnover = Sales or Revenues / Total Assets 700561/731890 570561/606890 Asset Turnover 0.957 0.940 Earnings per share =net income/no of shares 92116/32200.3 67116/31200.3 Earnings per share 2.86 2.15 Price-earnings ratio. Market price/EPS 8.71/2.860 11.44/2.15 Price-earnings ratio 3.05 5.32 Payout ratio. Dividend Paid 126442+92116-176442 114442+67116-126442 Dividend Paid 42116 55116 Dividends per Share (DPS) 1.31 1.77 Payout Ratio = Dividends per Share (DPS) / Earnings per Share (EPS) 46% 82% Debt to assets ratio. Debt/Asset debt 86442+147003 81442+87003 Debt to assets ratio. Debt/Asset 233445 168445 Debt to assets ratio. Debt/Asset 233445/731890 168445/606890 Debt to assets ratio. Debt/Asset 31.90% 27.76%

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