21)

Given the financial statements for Jones Corporation and Smith Corporation:

JONES CORPORATION
Current Assets	Liabilities
Cash			$	126,600	Accounts payable	$	156,000
Accounts receivable				188,500	Bonds payable (long term)		81,100
Inventory				59,200
Long-Term Assets	Stockholders' Equity
Gross fixed assets	$	525,000			Common stock	$	150,000
Less: Accumulated depreciation		154,100			Paid-in capital		70,000
Net fixed assets*				370,900	Retained earnings		288,100
Total assets			$	745,200	Total liabilities and equity	$	745,200

Sales (on credit)	$	1,758,000
Cost of goods sold		727,000
Gross profit	$	1,031,000
Selling and administrative expense		321,000
Depreciation expense		55,300
Operating profit	$	654,700
Interest expense		12,400
Earnings before taxes	$	642,300
Tax expense		96,700
Net income	$	545,600

*Use net fixed assets in computing fixed asset turnover.

Includes $8,000 in lease payments.

SMITH CORPORATION
Current Assets	Liabilities
Cash			$	43,100	Accounts payable	$	76,100
Marketable securities				14,700	Bonds payable (long term)		303,000
Accounts receivable				75,300
Inventory				84,200
Long-Term Assets	Stockholders' Equity
Gross fixed assets	$	587,000			Common stock	$	75,000
Less: Accumulated depreciation		252,800			Paid-in capital		30,000
Net fixed assets*				334,200	Retained earnings		67,400
Total assets			$	551,500	Total liabilities and equity	$	551,500

*Use net fixed assets in computing fixed asset turnover.

SMITH CORPORATION
Sales (on credit)	$	1,540,000
Cost of goods sold		1,129,000
Gross profit	$	411,000
Selling and administrative expense		233,000
Depreciation expense		52,000
Operating profit	$	126,000
Interest expense		25,400
Earnings before taxes	$	100,600
Tax expense		60,400
Net income	$	40,200

Includes $8,000 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	%	%
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