Given the financial statements for Jones Corporation and Smith Corporation:

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
Gross 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 liabilities and equity	$	500,000

Sales (on credit)	$	1,250,000
Cost of goods sold		750,000
Gross profit	$	500,000
Selling and administrative expense		257,000
Depreciation expense		50,000
Operating profit	$	193,000
Interest expense		8,000
Earnings before taxes	$	185,000
Tax expense		92,500
Net income	$	92,500

*Use net fixed assets in computing fixed asset turnover.

Includes $7,000 in lease payments.

SMITH CORPORATION
Current Assets					Liabilities
Cash			$	35,000	Accounts payable	$	75,000
Marketable securities				7,500	Bonds payable (long term)		210,000
Accounts receivable				70,000
Inventory				75,000
Long-Term Assets					Stockholders' Equity
Gross fixed assets	$	500,000			Common stock	$	75,000
Less: Accumulated depreciation		250,000			Paid-in capital		30,000
Net fixed assets*				250,000	Retained earnings		47,500
Total assets			$	437,500	Total liabilities and equity	$	437,500

*Use net fixed assets in computing fixed asset turnover.

SMITH CORPORATION
Sales (on credit)	$	1,000,000
Cost of goods sold		600,000
Gross profit	$	400,000
Selling and administrative expense		224,000
Depreciation expense		50,000
Operating profit	$	126,000
Interest expense		21,000
Earnings before taxes	$	105,000
Tax expense		52,500
Net income	$	52,500

Includes $7,000 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