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.

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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