Condensed balance sheet and income statement data for Jernigan Corporation are presented here. Additional information: 1. The
Question:
Condensed balance sheet and income statement data for Jernigan Corporation are presented here.
Additional information:
1. The market price of Jernigan’s common stock was $7.00, $7.50, and $8.50 for 2012, 2013, and 2014, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
Instructions
Compute the following ratios for 2013 and 2014.
(1) Profit margin.
(2) Gross profit rate.
(3) Asset turnover.
(4) Earnings per share.
(5) Price-earnings ratio.
(6) Payout ratio.
(7) Debt to assets ratio.
(b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2013 to 2014 of JerniganCorporation.
JERNIGAN CORPORATION Balance Sheets December 31 2014 2013 Cash Accounts receivable (net) Other current assets nvestments Plant and equipment (net) 30,000 50,000 90,000 55,000 500,000 $725,000 S 20,000 45,000 95,000 70,000 370,000 $600,000 2012 S 18,000 48,000 64,000 45,000 358,000 $533,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 85,000 145,000 320,000 175,000 $725,000 80,000 85,000 310,000 125,000 $600,000 70,000 50,000 300,000 113,000 $533,000 JERNIGAN CORPORATION Income Statements For the Years Ended December 31 2014 2013 Sales revenue Less: Sales returns and allowanc Net sales Cost of goods sold Gross profit $740,000 $600,000 30,000 570,000 350,000 220,000 150,000 40,000 700,000 425,000 275,000 180,000 95,000 70,000 es Operating expenses (including income taxes) Net income
Step by Step Answer:
a 2014 2013 1 Profit margin 136 123 2 Gross profit rate 393 386 ...View the full answer
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Students also viewed these Managerial Accounting questions
-
Condensed balance sheet and income statement data for Glassgow Corporation are presented here. Additional information:1. The market price of Glassgow's common stock was $7.00, $7.50, and $8.50 for...
-
Condensed balance sheet and income statement data for Clarence Corporation appear below. Additional information:1. The market price of Clarence?s common stock was $4.00, $5.00, and $8.00 for 2011,...
-
Condensed balance sheet and income statement data for Breckenridge Corporation are presented here. Additional information: 1. The market price of Breckenridge's common stock was $6.00, $9.00, and...
-
How does MacKinnon analyze cases of sexual harassment where the woman complies with the sexual advance? She suggests that these cases are therefore not wrongful. She suggests that these cases are too...
-
In Exercises apply part (b) or (c) of Exercise 26 to find the standard matrix of the transformation. In Exercise 26 (b) Figure 3.14 suggests a way to find the matrix of Fe, using the fact that the...
-
Financial figures of the business of C. Wilson for the last 2 years are shown below. The income statement for the business for the year ended 30 June 2021 reveals the following details. Additional...
-
(a) Does it make sense to talk about a dielectric constant for a conductor? If so, what value does the constant have? (b) What is the breakdown threshold for a conductor?
-
(a) A random sample of size 144 is taken from the local population of grade- school children. Each child estimates the number of hours per week spent watching TV. At this point, what can be said...
-
6. For an SHM oscillator, the amplitude is 5 cm and its time period is 4 seconds. The minimum time taken by the particle to pass between points which are at distances 4 cm and 3 cm from the centre of...
-
The adjusted trial balance of Bertrand Irrigation System at December 31, 2016, follows: Requirements 1. Prepare the companys income statement for the year ended December 31, 2016. 2. Prepare the...
-
The comparative statements of Osborne Company are presented here. All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were $136,000, and...
-
The following financial information is for Frizell Company. Additional information: 1. Inventory at the beginning of 2013 was $115,000. 2. Accounts receivable (net) at the beginning of 2013 were...
-
How are deferred tax liabilities and assets reported on a corporations balance sheet?
-
2.create a significantly offset operating expenses. He recommends savings that grow each year: 5-year project life, 10% discount rate, and a 10% annual savings growth in years 2 through 5. In other...
-
"Smelling salts," which are used to revive someone who has fainted, typically contain ammonium carbonate, (NH 4 ) 2 CO 3 . Ammonium carbonate decomposes readily to form ammonia, carbon dioxide, and...
-
2010 Owners Equity Is $3004 2011 Owners Equity Is $3972 C-1. In 2011, Parrothead Enterprises Purchased $2,652 In New Fixed Assets. How Much In Fixed Assets Did Parrothead Enterprises Sell? (Do Not...
-
How did GE function and perform well, when it was involved with many businesses that were unrelated? Why was what they did important to performance. What are key takeaways other firms can apply in...
-
Show your work completely Submit your answer on Canvas as one file in pdf by 1/16/2023 1. Find the area between the curve y=x* and x = y. 2. Find the volume of the solid generated by revolving the...
-
Write the integral in terms of u and du. Then evaluate. S 4x - 1 dx, 4x1dx, u = 4x - 1
-
A Alkynes can be made by dehydrohalogenation of vinylic halides in a reaction that is essentially an E2 process. In studying the stereochemistry of this elimination, it was found that...
-
An audit is planned and performed to give a . assurance that the accounts are free from misstatement. Which of the following pairs of words correctly completes the above sentence? (a) Reasonable (b)...
-
Explain why, when a company uses average cost method with a periodic inventory system, the cost of goods sold and ending inventory costs are different from the amounts calculated when using the...
-
Janine Ltd. ships merchandise to Fastrak Corporation on December 30. The merchandise reaches Fastrak on January 5. Indicate the terms of sale (FOB shipping point or FOB destination) that will result...
-
Explain whether each of the following should be included in the inventory of Kingsway Inc.: (a) Consigned goods held by a craft shop for sale on Kingsway's behalf, (b) Goods taken home on approval by...
-
in a thousand words explain the theoretical differences between a corporate and a divisional cost of capital, and the potential for serious valuation errors if the incorrect WACC is used
-
You own an a townhome with an assessed value of $183,800. The tax rate is $2.20 per $100 of assessed value. (Round your answers to the nearest cent.)(a)What is the amount of property tax (in $)?$...
-
es Carter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will...
Study smarter with the SolutionInn App