Sprint 5:03 PM 742% Done Photo Zoom 34. Given the financial statements for Jones Corporation and Smith Corporation shown here: a. To which one would you, as credit manager for a supplier, approve the extension of short-term) trade credid? Why? Compute all ratios before answering h In which one would you buy stock? Why? $100,000 $150.000 70,000 100,000 3500,000 JONES CORPORATION Current Assets Lists $ 20,000 Accounts payat Accounts receive 80,000 Bonds payong larm Inventory 50,000 Long-Term Assets stockholders' Equity $500,000 common stock Les Accum depreciation (150,000) Pos-capital Notfred as 350,000 Ricar Total $500,000 Total abando Se on creat $1,250,000 cost of goods sold 750,000 Gross pront 500,000 Song and some opere 257.000 Less: Depreciation expose 50.000 Operating prom 190.000 Worst expense 8.000 Earnings before 185.000 Taxons 2.500 Not income $ 2.500 il Sprint 5:03 PM @ 1.42% Done Photo 34. (Continued) $ 75,000 210,000 SMITH CORPORATION Current Assets Labte Cash $ 35,000 Accounts payable Marco securities 7,500 Bonds paycie plong-term Accounts rococo 70,000 Inventory 75,000 Long-Term Assets stockholders' Equity Fbrod assets $ 500,000 Common stock Los: Accum op (250,000) Pas in cap No todas 250,000 Atendings Total assets $437.500 Total abandy Vened in computing feature $ 75,000 20,000 47,500 $427,500 Sales con credit Cost of goods sold Gross profit. Selling and administrative expenset L65: Depreciation expense Operating profit... Interest expense Earnings before taxes. Tax capenso Net Income $1,000,000 600,000 400,000 224,000 50,000 126,000 21.000 105,000 52,500 $ 52,500 includes $7,000 in less payments