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Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 25,900 Accounts payable $ 149,000 Accounts receivable 81,500

Given the financial statements for Jones Corporation and Smith Corporation:

JONES CORPORATION
Current Assets Liabilities
Cash $ 25,900 Accounts payable $ 149,000
Accounts receivable 81,500 Bonds payable (long term) 80,300
Inventory 51,800
Long-Term Assets Stockholders' Equity
Gross fixed assets $ 514,000 Common stock $ 150,000
Less: Accumulated depreciation 155,900 Paid-in capital 70,000
Net fixed assets* 358,100 Retained earnings 68,000
Total assets $ 517,300 Total liabilities and equity $ 517,300

Sales (on credit) $ 1,347,000
Cost of goods sold 790,000
Gross profit $ 557,000
Selling and administrative expense 337,000
Depreciation expense 51,600
Operating profit $ 168,400
Interest expense 16,500
Earnings before taxes $ 151,900
Tax expense 102,400
Net income $ 49,500

*Use net fixed assets in computing fixed asset turnover. Includes $15,400 in lease payments.

SMITH CORPORATION
Current Assets Liabilities
Cash $ 39,100 Accounts payable $ 80,300
Marketable securities 17,400 Bonds payable (long term) 217,000
Accounts receivable 73,800
Inventory 75,100
Long-Term Assets Stockholders' Equity
Gross fixed assets $ 509,000 Common stock $ 75,000
Less: Accumulated depreciation 254,200 Paid-in capital 30,000
Net fixed assets* 254,800 Retained earnings 57,900
Total assets $ 460,200 Total liabilities and equity $ 460,200

*Use net fixed assets in computing fixed asset turnover.

SMITH CORPORATION
Sales (on credit) $ 1,090,000
Cost of goods sold 658,000
Gross profit $ 432,000
Selling and administrative expense 256,000
Depreciation expense 56,600
Operating profit $ 119,400
Interest expense 24,100
Earnings before taxes $ 95,300
Tax expense 59,100
Net income $ 36,200

Includes $15,400 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 Magin
Return on Assets
Return on Equity
Recievable Turnover
Average COllection Period
Inventory Turn Over
Fixed Asset Turnover
Total Asset Turnover

Current Ratio

Quick Ratio
Debt to total assets

times interest earned

and

Fixed charge coverage

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