Given the financial statements for Jones Corporation and Smith Corporation: JONES...
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Accounting
Given the financial statements for Jones Corporation and Smith Corporation:
JONES CORPORATION
Current Assets
Liabilities
Cash
$
123,300
Accounts payable
$
176,000
Accounts receivable
183,600
Bonds payable (long term)
89,600
Inventory
56,800
Long-Term Assets
Stockholders' Equity
Gross fixed assets
$
554,000
Common stock
$
150,000
Less: Accumulated depreciation
152,300
Paid-in capital
70,000
Net fixed assets*
401,700
Retained earnings
279,800
Total assets
$
765,400
Total liabilities and equity
$
765,400
Sales (on credit)
$
1,255,000
Cost of goods sold
678,000
Gross profit
$
577,000
Selling and administrative expense
355,000
Depreciation expense
59,400
Operating profit
$
162,600
Interest expense
11,300
Earnings before taxes
$
151,300
Tax expense
82,500
Net income
$
68,800
*Use net fixed assets in computing fixed asset turnover. Includes $12,700 in lease payments.
SMITH CORPORATION
Current Assets
Liabilities
Cash
$
44,000
Accounts payable
$
83,700
Marketable securities
7,900
Bonds payable (long term)
290,000
Accounts receivable
73,700
Inventory
77,500
Long-Term Assets
Stockholders' Equity
Gross fixed assets
$
557,000
Common stock
$
75,000
Less: Accumulated depreciation
251,800
Paid-in capital
30,000
Net fixed assets*
305,200
Retained earnings
29,600
Total assets
$
508,300
Total liabilities and equity
$
508,300
*Use net fixed assets in computing fixed asset turnover.
SMITH CORPORATION
Sales (on credit)
$
1,430,000
Cost of goods sold
919,000
Gross profit
$
511,000
Selling and administrative expense
299,000
Depreciation expense
57,500
Operating profit
$
154,500
Interest expense
30,600
Earnings before taxes
$
123,900
Tax expense
59,900
Net income
$
64,000
Includes $12,700 in lease payments. a. Compute the following ratios. (Use a 360-day year. Do not round intermediate calculations. Input your profit margin, return on assets, return on equity, and debt to total assets answers as a percent rounded to 2 decimal places. Round all other answers to 2 decimal places.)
Jones Corp.
Smith Corp.
Profit margin
5.48
%
4.48
%
Return on assets (investments)
8.99
%
12.60
%
Return on equity
13.77
%
47.55
%
Receivable turnover
6.84
times
19.40
times
Average collection period
52.63
days
18.56
days
Inventory turnover
times
times
Fixed asset turnover
times
times
Total asset turnover
times
times
Current ratio
times
times
Quick ratio
times
times
Debt to total assets
%
%
Times interest earned
times
times
Fixed charge coverage
times
times
I answered some of them but I'm not sure if they are correct.
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