Given the financial statements for Jones Corporation and Smith Corporation: $ 127,000 85,600 Current Assets Cash Accounts receivable Inventory Long-Term Assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets JONES CORPORATION Liabilities $ 22,000 Accounts payable 31,100 Bonds payable (long term) 50,000 Stockholders' Equity $ 526,000 Common stock 150, 700 Pald-in capital 375,300 Retained earnings $ 528,400 Total liabilities and equity ook nt $ 150,000 70,000 95,800 $ 528,400 Sales (on credit) Cost of goods sold Gross profit Selling and administrative expense" Depreciation expense Operating profit Interest expense Earnings before taxes Tax expense Net income $ 1,326,000 790,000 $ 536,000 304,000 59,300 $ 172,200 14,500 $ 157,700 99,600 $ 58,100 *Use net fixed assets in computing fixed asset turnover. Tincludes $13,500 in lease payments. $ 83,300 217,000 Current Assets Cash Marketable securities Accounts receivable Inventory Long-Term Assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets SMITH CORPORATION Liabilities $ 38,400 Accounts payable 12,700 Bonds payable (long term) 74,300 83,700 Stockholders' Equity $ 500,000 Common stock 255,800 Paid in capital 248, 280 Retained earnings $ 457,300 Total liabilities and equity $ 75,000 30,000 52,000 $ 457,300 nces "Use net fixed assets in computing fixed asset turnover SMITH CORPORATION Sales (on credit) Cost of goods sold Gross profit Selling and administrative expense! Depreciation expense Operating profit Interest expense Earnings before taxes Tax expense $ 1,100,000 640,000 $ 460,000 272,00 56,500 $ 131,500 24 300 $ 107,200 $6,500 Che Tax expense Net income 56,500 50,700 includes $13,500 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.) Smith Corp Profit margin Return on assets (investments) Return on equity Receivable tumover Average collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Jones Corp. % % % times days times times times times times % % % times days times times times times % Quick ratio times times % Debt to total assets Times interest eamed Fixed charge coverage % times times mes times
