Question
Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 21,100 Accounts payable $ 131,000 Accounts receivable 81,600
Given the financial statements for Jones Corporation and Smith Corporation:
JONES CORPORATION | |||||||
Current Assets | Liabilities | ||||||
Cash | $ | 21,100 | Accounts payable | $ | 131,000 | ||
Accounts receivable | 81,600 | Bonds payable (long term) | 82,800 | ||||
Inventory | 58,700 | ||||||
Long-Term Assets | Stockholders' Equity | ||||||
Gross fixed assets | $ | 571,000 | Common stock | $ | 150,000 | ||
Less: Accumulated depreciation | 155,200 | Paid-in capital | 70,000 | ||||
Net fixed assets* | 415,800 | Retained earnings | 143,400 | ||||
Total assets | $ | 577,200 | Total liabilities and equity | $ | 577,200 | ||
Sales (on credit) | $ | 1,892,000 |
Cost of goods sold | 771,000 | |
Gross profit | $ | 1,121,000 |
Selling and administrative expense | 300,000 | |
Depreciation expense | 51,100 | |
Operating profit | $ | 769,900 |
Interest expense | 12,700 | |
Earnings before taxes | $ | 757,200 |
Tax expense | 97,100 | |
Net income | $ | 660,100 |
|
*Use net fixed assets in computing fixed asset turnover. Includes $11,900 in lease payments.
SMITH CORPORATION | |||||||
Current Assets | Liabilities | ||||||
Cash | $ | 38,100 | Accounts payable | $ | 76,600 | ||
Marketable securities | 10,300 | Bonds payable (long term) | 218,000 | ||||
Accounts receivable | 73,100 | ||||||
Inventory | 75,800 | ||||||
Long-Term Assets | Stockholders' Equity | ||||||
Gross fixed assets | $ | 541,000 | Common stock | $ | 75,000 | ||
Less: Accumulated depreciation | 253,000 | Paid-in capital | 30,000 | ||||
Net fixed assets* | 288,000 | Retained earnings | 85,700 | ||||
Total assets | $ | 485,300 | Total liabilities and equity | $ | 485,300 | ||
|
*Use net fixed assets in computing fixed asset turnover.
SMITH CORPORATION | ||
Sales (on credit) | $ | 1,190,000 |
Cost of goods sold | 672,000 | |
Gross profit | $ | 518,000 |
Selling and administrative expense | 320,000 | |
Depreciation expense | 52,600 | |
Operating profit | $ | 145,400 |
Interest expense | 30,000 | |
Earnings before taxes | $ | 115,400 |
Tax expense | 57,900 | |
Net income | $ | 57,500 |
|
Includes $11,900 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.)
Johnes corp smith corp
Profit Margin(%)
Return on assets(investment)(%)
Return on equity(%)
Receivable turnover(times)
Average collection period(days)
inventory turnover(times)
fixed asset turnover (times)
total asset turnover (times)
current ratio(times)
quick ratio(times)
debt to total asset(%)
times interest earned(times)
fixed charge coverage(times)
Please show the fomular for how to geting the number. Than you :)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started