2. Based on the handout for Smith Inc. and Jones Corp., (1) calculate the following ratios, figures, and/or Percentages; (ii) for each item (a through h), circle the company that has the better result and then, (iii) indicate which company is in better financial shape overall, BASED ON THE ANSWERS YOU HAVE CALCULATED. (10 marks) (NOTE: just use year-end information; no average values available) a. Working Capital: Smith: Jones: b. Days of Sales in Inventory: Smith: Jones: c. Quick Ratio: Smith: Jones: d. Profit Margin: Smith: Jones: e. Days of Accounts Payable: Smith: Jones: f. Return on Common Shareholders' Equity: Smith: Jones. 4 Assets Current Assets Cash Cash Equivalents Total Current Assets Capital Assets Net Capital Assets Capital Assets Acc.Deprec. Sales COGS A/R Inventory Total Assets Liabilities Total Liabilities Shareholder's Equity Total Shareholder's Equity Total Liabilities and S/E (note: shares outstanding) A/P $ Longterm Bonds Payable $ $ Gross Profit Selling & Admin exp Depreciation exp Interest exp Op. Profit Common Stock $ Retained Earnings $ Earnings Before Taxes Tax exp $ 20,000 $ 80,000 $ 70,000 $ 170,000 SSSS Net Income $ $ $ $ Smith Inc. ($) $ $ $ $ 350,000 520,000 100,000 100,000 200,000 $ $ 100,000 Jones Corp. ($) 500,000 $ (150,000) SSSSS 320,000 520,000 $ $ $ $ $ 35,000 7,500 500,000 $ (220,000) $ 280,000 $ 487,500 $ $ $ 90,000 75,000 207,500 220,000 $ 135,000 100,000 $ 47,500 $ $ 75,000 95,000 210,000 305,000 182,500 487,500 1,250,000 $ 1,000,000 630.000 $ 620,000 $ 290,000 $ 50,000 $ 280,000 $ 8.000 272,000 136,000 136,000 600,000 400,000 224,000 50.000 126,000 21.000 105,000 52,500 52,500