Condensed balance sheet and income statement data for Jernigan Corporation are presented here.

JERNIGAN CORPORATION Balance Sheets December 31 2014 2013 2012 Cash $ 30,000 $ 20,000 $ 18,000 Accounts receivable (net) 50,000 45,000 48,000 Other current assets 90,000 95,000 64,000 Investments 55,000 70,000 45,000 Plant and equipment (net) 500,000 370,000 358,000

$725,000 $600,000 $533,000 Current liabilities $ 85,000 $ 80,000 $ 70,000 Long-term debt 145,000 85,000 50,000 Common stock, $10 par 320,000 310,000 300,000 Retained earnings 175,000 125,000 113,000

$725,000 $600,000 $533,000 JERNIGAN CORPORATION Income Statements For the Years Ended December 31 2014 2013 Sales revenue $740,000 $600,000 Less: Sales returns and allowances 40,000 30,000 Net sales 700,000 570,000 Cost of goods sold 425,000 350,000 Gross profit 275,000 220,000 Operating expenses (including income taxes) 180,000 150,000 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 You must compute dividends paid. All dividends were paid in cash.
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.AppendixLO1