The financial statements for Jones Corporation and Smith Corporation are shown below. $($Use $365$ days in a year. Round the answers in days to whole number and other final answers to $1$ decimal places.$)$

JONES CORPORATION

Current Assets Liabilities

Cash $ $20,000$ Accounts payable $ $100,000$

Accounts receivable $80,000$ Bonds payable $($long$-$term$)80,000$

Inventory $50,000$

Total current assets $150,000$ Total liabilities $180,000$

Long$-$Term Assets Shareholders$$ Equity

Capital assets $500,000$ Common stock $220,000$

Acc. amortization $150,000$ Retained earnings $100,000$

Net capital assets $350,000$

$ $500,000$ $ $500,000$

Sales $($on credit$)$ $ $1,250,000$

Cost of goods sold $750,000$

Gross profit $500,000$

Selling and administrative expense$*257,000$

Amortization expense $50,000$

Operating profit $193,000$

Interest expense $8,000$

Earnings before taxes $185,000$

Tax expense $(50\%)92,500$

Net income $ $92,500$

$*$Includes $$7,000$ in lease payments.

Note: Jones Corporation has $75,000$ shares outstanding.

SMITH CORPORATION

Current Assets Liabilities

Cash $ $35,000$ Accounts payable $ $75,000$

Marketable securities $7,500$ Bonds payable @ $10\%($long$-$term$)210,000$

Accounts receivable $70,000$

Inventory $75,000$

Total current assets $187,500$ Total liabilities $285,000$

Long$-$Term Assets Shareholders$$ Equity

Capital assets $500,000$ Common stock $105,000$

Acc. amortization $250,000$ Retained earnings $47,500$

Net capital assets $250,000$

$ $437,500$ $ $437,500$

Sales $($on credit$)$ $ $1,000,000$

Cost of goods sold $600,000$

Gross profit $400,000$

Selling and administrative expense$*224,000$

Amortization expense $50,000$

Operating profit $126,000$

Interest expense $21,000$

Earnings before taxes $105,000$

Tax expense $(50\%)52,500$

Net income $ $52,500$

$*$Includes $$7,000$ in lease payments.

Note: Smith Corporation has $75,000$ shares outstanding.

a$-1.$ Compute all ratios.

Jones Corp. Smith Corp.

Profit margin $7\mathrm{.}4$ Numeric Response $1.$Edit Unavailable. $7\mathrm{.}4$ correct. $\%5\mathrm{.}3$ Numeric Response $2.$Edit Unavailable. $5\mathrm{.}3$ correct. $\%$

Return on assets $($investments$)18\mathrm{.}5$ Numeric Response $3.$Edit Unavailable. $18\mathrm{.}5$ correct. $\%12\mathrm{.}0$ Numeric Response $4.$Edit Unavailable. $12\mathrm{.}0$ correct. $\%$

Return on equity $28\mathrm{.}9$ Numeric Response $5.$Edit Unavailable. $28\mathrm{.}9$ correct. $\%\%$

Receivable turnover $15\mathrm{.}6$ Numeric Response $6.$Edit Unavailable. $15\mathrm{.}6$ correct. $\backslash$times $14\mathrm{.}3$ Numeric Response $7.$Edit Unavailable. $14\mathrm{.}3$ correct. $\backslash$times

Average collection period $23$ Numeric Response $8.$Edit Unavailable. $23$ correct. days $26$ Numeric Response $9.$Edit Unavailable. $26$ correct. days

Inventory turnover $15$ Numeric Response $10.$Edit Unavailable. $15$ correct. $\backslash$times $8$ Numeric Response $11.$Edit Unavailable. $8$ correct. $\backslash$times

Inventory holding period $24$ Numeric Response $12.$Edit Unavailable. $24$ correct. days $46$ Numeric Response $13.$Edit Unavailable. $46$ correct. days

Accounts payable turnover $7\mathrm{.}5$ Numeric Response $14.$Edit Unavailable. $7\mathrm{.}5$ correct. $8$ Numeric Response $15.$Edit Unavailable. $8$ correct.

Accounts payable period $49$ Numeric Response $16.$Edit Unavailable. $49$ correct. days $46$ Numeric Response $17.$Edit Unavailable. $46$ correct. days

Capital asset turnover $3\mathrm{.}6$ Numeric Response $18.$Edit Unavailable. $3\mathrm{.}6$ correct. $\backslash$times $4$ Numeric Response $19.$Edit Unavailable. $4$ correct. $\backslash$times

Total asset turnover $2\mathrm{.}5$ Numeric Response $20.$Edit Unavailable. $2\mathrm{.}5$ correct. $\backslash$times $2\mathrm{.}3$ Numeric Response $21.$Edit Unavailable. $2\mathrm{.}3$ correct. $\backslash$times

Current ratio

Quick ratio

Debt to total assets $36$ Numeric Response $22.$Edit Unavailable. $36$ correct. $\%\%$

Times interest earned $24\mathrm{.}1$ Numeric Response $23.$Edit Unavailable. $24\mathrm{.}1$ correct. $\backslash$times $6\mathrm{.}0$ Numeric Response $24.$Edit Unavailable. $6\mathrm{.}0$ correct. $\backslash$times

Fixed charge coverage $13\mathrm{.}3$ Numeric Response $25.$Edit Unavailable. $13\mathrm{.}3$ correct. $\backslash$times $\backslash$times

a$-2.$ To which company would you, as credit manager for a supplier, approve the extension of $($short$$term$)$ trade credit?

Short$$term trade credit approved for Smith Corporation Correct

b$.$ In which corporation would you buy shares?

You would buy shares in Jones Corporation Please dont send the previous answers its wrong