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: o d. Profit Margin: Smith: Jones: c. Days of Accounts Payable: Smith: Jones: . Return on Common Shareholders' Equity: Smith: Jones Jones Corp. Smith Inc. ($) ($) $ 20,000 A A A A Assets Current Assets Cash Cash Equivalents A/R Inventory Total Current Assets Capital Assets Capital Assets Acc.Deprec. Net Capital Assets Total Assets $ 80,000 $ -70,000 $ 170,000 $ $ $ $ $ 35,000 7,500 90,000 75,000 207,500 only $ $ $ $ 500,000 (150,000) 350,000 520,000 $ 500,000 $ (220,000 $ 280,000 $ 487,500 $ $ $ 100,000 100,000 200,000 $ $ $ 95,000 210,000 305,000 Liabilities ANP Longterm Bonds Payable Total Liabilities Shareholder's Equity Common Stock Retained Earnings Total Shareholder's Equity Total Liabilities and S/E (note: shares outstanding) $ 220,000 $ 100.000 $ 320,000 $ 520,000 100,000 $ 135,000 $ 47,500 $ 182,500 $ 487,500 75,000 Sales COGS Gross Profit Selling & Admin exp Depreciation exp Op. Profit Interest exp Earnings Before Taxes $ 1,250,000 $ 630.000 $ 620,000 $ 290,000 $ 50.000 $ 280,000 8.000 $ 272,000 $ 136.000 136,000 $ 1,000,000 $ 600.000 $ 400,000 $ 224,000 $ 50.000 $ 126,000 21.000 $ 105,000 52.500 52,500 Tax exp olu Net Income