Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 21,400 Accounts payable $ 121,000 Accounts receivable 86,100 Bonds payable (long...

60.1K

Verified Solution

Question

Finance

Given the financial statements for Jones Corporation and SmithCorporation:
JONES CORPORATION
Current Assets Liabilities
Cash $ 21,400 Accounts payable $ 121,000
Accounts receivable 86,100 Bonds payable (long term) 89,700
Inventory 55,100
Long-Term Assets Stockholders' Equity
Gross fixed assets $ 526,000 Common stock $ 150,000
Less: Accumulated depreciation 151,300 Paid-in capital 70,000
Net fixed assets* 374,700 Retained earnings 106,600
Total assets $ 537,300 Total liabilities and equity $ 537,300

Sales (on credit) $ 1,803,000
Cost of goods sold 760,000
Gross profit $ 1,043,000
Selling and administrative expense^† 333,000
Depreciation expense 53,300
Operating profit $ 656,700
Interest expense 8,300
Earnings before taxes $ 648,400
Tax expense 98,700
Net income $ 549,700
Use net fixed assets in computing fixed asset turnover.
†Includes $16,200 in lease payments.

SMITH CORPORATION
Current Assets Liabilities
Cash $ 37,000 Accounts payable $ 83,800
Marketable securities 10,200 Bonds payable (long term) 278,000
Accounts receivable 75,900
Inventory 79,800
Long-Term Assets Stockholders' Equity
Gross fixed assets $ 566,000 Common stock $ 75,000
Less: Accumulated depreciation 259,500 Paid-in capital 30,000
Net fixed assets 306,500 Retained earnings 42,600
Total assets $ 509,400 Total liabilities and equity $ 509,400
*Use net fixed assets in computing fixed asset turnover.

SMITH CORPORATION
Sales (on credit) $ 1,170,000
Cost of goods sold 659,000
Gross profit $ 511,000
Selling and administrative expense^† 292,000
Depreciation expense 50,300
Operating profit $ 168,700
Interest expense 26,300
Earnings before taxes $ 142,400
Tax expense 54,900
Net income $ 87,500
^†Includes $16,200 in lease payments.

a. Compute the following ratios. (Use a360-day year. Do not round intermediate calculations. Input yourprofit margin, return on assets, return on equity, and debt tototal assets answers as a percent rounded to 2 decimal places.Round all other answers to 2 decimal places.)
Jones Corp. Smith Corp.
Profit margin % %
Return on assets (investments) % %
Return on equity % %
Receivable turnover times times
Average collection period days 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

Answer & Explanation Solved by verified expert

3.9 Ratings (561 Votes)

Answer For Jones Corp Profit Margin Net Income Sales 100 Profit Margin 549700 1803000 100 Profit Margin 3049 Return on Assets Net Income Total Assets 100 Return on Assets 549700 537300 100 Return on Assets 10231 Stockholders Equity Common Stock Paid in Capital Retained See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Given the financial statements for Jones Corporation and SmithCorporation: JONES CORPORATIONCurrent AssetsLiabilitiesCash$21,400Accounts payable$121,000Accounts receivable86,100Bonds payable (long term)89,700Inventory55,100Long-Term AssetsStockholders' EquityGross fixed assets$526,000Common stock$150,000Less: Accumulated depreciation151,300Paid-in capital70,000Net fixed assets*374,700Retained earnings106,600Total assets$537,300Total liabilities and equity$537,300 Sales (on credit)$1,803,000Cost of goods sold760,000Gross profit$1,043,000Selling and administrative expense†333,000Depreciation expense53,300Operating profit$656,700Interest expense8,300Earnings before taxes$648,400Tax expense98,700Net income$549,700*Use net fixed assets in computing fixed asset turnover.†Includes $16,200 in lease payments. SMITH CORPORATIONCurrent AssetsLiabilitiesCash$37,000Accounts payable$83,800Marketable securities10,200Bonds payable (long term)278,000Accounts receivable75,900Inventory79,800Long-Term AssetsStockholders' EquityGross fixed assets$566,000Common stock$75,000Less: Accumulated depreciation259,500Paid-in capital30,000Net fixed assets*306,500Retained earnings42,600Total assets$509,400Total liabilities and equity$509,400*Use net fixed assets in computing fixed asset turnover. SMITH CORPORATIONSales (on credit)$1,170,000Cost of goods sold659,000Gross profit$511,000Selling and administrative expense†292,000Depreciation expense50,300Operating profit$168,700Interest expense26,300Earnings before taxes$142,400Tax expense54,900Net income$87,500†Includes $16,200 in lease payments. a. Compute the following ratios. (Use a360-day year. Do not round intermediate calculations. Input yourprofit margin, return on assets, return on equity, and debt tototal assets answers as a percent rounded to 2 decimal places.Round all other answers to 2 decimal places.)Jones Corp.Smith Corp.Profit margin%%Return on assets (investments)%%Return on equity%%Receivable turnovertimestimesAverage collection perioddaysdaysInventory turnovertimestimesFixed asset turnovertimestimesTotal asset turnovertimestimesCurrent ratiotimestimesQuick ratiotimestimesDebt to total assets%%Times interest earnedtimestimesFixed charge coveragetimestimes

JONES CORPORATION
Current Assets					Liabilities
Cash			$	21,400	Accounts payable	$	121,000
Accounts receivable				86,100	Bonds payable (long term)		89,700
Inventory				55,100
Long-Term Assets					Stockholders' Equity
Gross fixed assets	$	526,000			Common stock	$	150,000
Less: Accumulated depreciation		151,300			Paid-in capital		70,000
Net fixed assets*				374,700	Retained earnings		106,600
Total assets			$	537,300	Total liabilities and equity	$	537,300


Sales (on credit)	$	1,803,000
Cost of goods sold		760,000
Gross profit	$	1,043,000
Selling and administrative expense^†		333,000
Depreciation expense		53,300
Operating profit	$	656,700
Interest expense		8,300
Earnings before taxes	$	648,400
Tax expense		98,700
Net income	$	549,700

SMITH CORPORATION
Current Assets					Liabilities
Cash			$	37,000	Accounts payable	$	83,800
Marketable securities				10,200	Bonds payable (long term)		278,000
Accounts receivable				75,900
Inventory				79,800
Long-Term Assets					Stockholders' Equity
Gross fixed assets	$	566,000			Common stock	$	75,000
Less: Accumulated depreciation		259,500			Paid-in capital		30,000
Net fixed assets*				306,500	Retained earnings		42,600
Total assets			$	509,400	Total liabilities and equity	$	509,400

SMITH CORPORATION
Sales (on credit)	$	1,170,000
Cost of goods sold		659,000
Gross profit	$	511,000
Selling and administrative expense^†		292,000
Depreciation expense		50,300
Operating profit	$	168,700
Interest expense		26,300
Earnings before taxes	$	142,400
Tax expense		54,900
Net income	$	87,500