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16. Ratio computation and analysis. Given the financial statements for Jones Corporation shown here: JONES CORPORATION Current Assets Liabilities Cash $ 20,000 Accounts payable ............

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16. Ratio computation and analysis. Given the financial statements for Jones Corporation shown here: JONES CORPORATION Current Assets Liabilities Cash $ 20,000 Accounts payable ............ $100,000 Accounts receivable.. 80,000 Bonds payable (long-term)... 80,000 Inventory 50,000 Long-Term Assets Stockholders' Equity Fixed assets..... $500,000 Common stock. $150,000 Less: Accumulated depreciation (150,000) Paid-in capital.. 70,000 Net fixed assets 350,000 Retained earnings .... 100,000 Total assets. $500.000 Total liab, and equity... $500,000 Sales (on credit). Cost of goods sold. Gross profit....... Selling and administrative expenset Less: Depreciation expense. Operating profit Interest expense Earnings before taxes. $1,250,000 750,000 500,000 257,000 50,000 193,000 8,000 185,000 Tax expense Net income. 92,500 92,500 *Use net fixed assets in computing fixed asset turnover. Compute the following ratios: Proht margin Return on assets Return on equity Days sales outstanding Inventory turnover Fixed asset turnover Total asset turnover Current Assets Cash Accounts receivable. Inventory.. Long-Term Assets Fixed assets. Less: Accumulated depreciation Net fixed assets Total assets Liabilities $ 20,000 Accounts payable .......... $100,000 80,000 Bonds payable (long-term).. 80,000 50,000 Stockholders' Equity $500,000 Common stock $150,000 (150,000) Paid-in capital.. 70,000 350,000 Retained earnings...... 100,000 $500.000 Total liab, and equity... $500,000 Sales (on credit) Cost of goods sold Gross profit....... Selling and administrative expenset Less: Depreciation expense Operating profit Interest expense. Earnings before taxes. $1,250,000 750,000 500,000 257,000 50,000 193,000 8,000 185,000 Tax expense Net income.. $ 92,500 92,500 *Use net fixed assets in computing fixed asset turnover. Compute the following ratios: Profit margin Return on assets Return on equity Days sales outstanding Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned

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