321

Complete The Spreadsheets


colspan="5">You must compute dividends paid.  All dividends were paid in cash.
P13-3A  Perform ratio analysis, and discuss change in financial position and operating results
Condensed balance sheet and income statement data for Jernigan Corporation are presented here.
       
 JERNIGAN CORPORATION
 Balance Sheet
 December

31
    201420132012
 Cash  $30,000 $20,000 $18,000
 Accounts receivable (net)50,00045,00048,000
 Other current assets 90,00095,00064,000
 Investments 55,00070,00045,000
 Plant and equipment (net)500,000370,000358,000
    $725,000 $600,000 $533,000

       
 Current liabilities $85,000 $80,000 $70,000
 Long-term debt 145,00085,00050,000
 Common stock, $10 par320,000310,000300,000
 Retained Earnings 175,000125,000113,000
    $725,000 $600,000 $533,000

       
       
 JERNIGAN CORPORATION
 Income Statement
 For the Year Ended December 31
     20142013
 Sales revenue  $740,000 $600,000
 Less: Sales return and allowances 40,00030,000
 Net sales   700,000 570,000

 Cost of goods sold  425,000350,000
 Gross profit  275,000 220,000
 Operating expenses (including income taxes)180,000150,000
 Net income  95,000 70,000
       
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. 
       
Instructions     
(a)Compute the following ratios for 2013 and 2014.  
 (1)  Profit margin. 5. Price-earnings ratio. 
 (2)  Gross profit rate. 6. Payout ratio.  
 (3)  Asset turnover. 7. Debt to assets ratio. 
 (4)  Earnings per

share.
   
(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 Jernigan Corporation.
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
       
       
       
(a)(1)Profit

margin
    
    20142013 
 Net income    
 Net sales     
 Profit margin ?? 
       
       
(a)(2)Gross profit

rate
    
    20142013 
 Gross profit    
 Net sales     
 Gross profit rate ?? 
       
       
(a)(3)Asset

turnover
    
    20142013 
 Total assets, 2014 Value  
 Total assets, 2013 ValueValue 
 Total assets, 2012  Value 
 Average total assets ?? 
       
    20142013 
 Net

sales
  ValueValue 
 Average total assets ValueValue 
 Asset turnover ?? 
       
       
(a)(4)Earnings per share    
    20142013 
 Common shares outstanding, 2014Value  
 Common shares outstanding,

2013
ValueValue 
 Common shares outstanding, 2012 Value 
 Average common shares outstanding?? 
       
    20142013 
 Net income - Pfd. DividendsValueValue 
 Average common shares outstandingValueValue 
 Earnings per

share
 ?? 
       
       
(a)(5)Price-earnings ratio    
    20142013 
 Stock price per share ValueValue 
 Earnings per share ValueValue 
 Price-earnings

ratio
 ?? 
       
       
(a)(6)Payout ratio    
    20142013 
 Prior year's retained earningsValueValue 
 Plus: current year net incomeValueValue 
 Less: current year's retained earningsValueValue 
 Cash dividends

declared
?? 
       
    20142013 
 Cash dividends declared (common)ValueValue 
 Net income ValueValue 
 Payout ratio ?? 
       
       
(a)(7)Debt to assets

ratio
    
    20142013 
 Current Liabilities  Value 
 Long-term debt ValueValue 
 Total liabilities ?? 
 Total assets ValueValue 
 Debt to assets ratio ?? 

 



E13-4   Prepare vertical analysis        
Operating data for Jacobs Corporation are presented below.      
            
    20142013      
 Sales

revenue
 $800,000 $600,000       
 Cost of goods sold 520,000408,000      
 Selling expenses 120,00072,000      
 Administrative expenses60,00048,000      
 Income tax expense 30,00024,000      
 Net

income
 70,00048,000      
            
Instructions          
Prepare a schedule showing a vertical analysis for 2014 and 2013.     
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?"

.
 
            
            
            
JACOBS CORPORATION     
Condensed Income Statement     
For the Years Ended December

31
     
   20142013     
   Amount PercentAmountPercent     
Sales Revenue  ? ?     
Cost of goods sold  ? ?     
Gross

profit 
  ? ?     
Selling expenses  ? ?     
Administrative expenses ? ?     
Total operating expenses ? ?     
Income before income taxes????     
Income tax

expense
 ? ?     
Net income  ? ?     

 

E13-3   Prepare horizontal analysis     
Here is financial information for Spangles,

Inc.
    
         
    December 31, 2014December 31, 2013   
 Current assets $106,000 $90,000    
 Plant assets (net) 400,000350,000   
 Current liabilities 99,00065,000   
 Long-term

liabilities
 122,00090,000   
 Common stock, $1 par 130,000115,000   
 Reained earnings 155,000170,000   
         
Instructions       
Prepare a schedule showing a horizontal analysis for 2014, using 2013 as the base year.   
NOTE:  Enter a number in cells

requesting a value; enter either a number or a formula in cells with a "?" .
 
         
         
         
      Increase or (Decrease) 
    20142013AmountPercentage 
Assets     
Current

assets
   ? 
Plant assets (net)   ? 
     Total assets   ? 
         
Liabilities     
Current liabilities   ? 
Long-term liabilities   ? 
     Total

liabilities
   ? 
         
Stockholders' equity     
Common stock, $1 par   ? 
Retained earnings   ? 
    Total stockholders' equity   ? 
    Total liabilities and stockholders' equity   ? 

 

 

 


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