- What is your interpretation of the phrase act local, think global? Give specific examples and cite your information
K 17e ter 3 Problem 37 Given the financial statements for Jones Corporation and Smith Corporation: $ $ 100,000 80,000 Current Assets Cash Accounts receivable Inventory Long-Term Assets Fixed assets Less: Accumulated depreciation Net fixed assets JONES CORPORATION Liabilities 20,000 Accounts payable 80,000 Bonds payable long term) 50,000 Stockholders' Equity 500,000 Common stock (150,000) Paid in capital 350,000 Retained earnings $ $ 150,000 70,000 100,000 Total assets $ 500,000 Total liabilities and equity $ 500,000 Sales on credit) Cost of goods sold 5 1.250.000 750,000 +500,000 Gross profit Selling and administrative expense Less: Depreciation expense 257,000 50,000 Operating profit Interest expense 193,000 8,000 Earnings before taxes Taxexpense 185,000 92,500 Net Income $ 92.500 "Useneta was in computing fixed a turnover Includes $7,000 in lease payment Current Arts Cash Marketable securities Accounts receivable Inventory 75,000 210,000 SMITH CORPORATION Libilities 35,000 Accounts poble 7.500 Bonds payable long term 70,000 75,000 Stockholders' Equity 500,000 Comment 250.000) Palencia 350.000 Retained ninet Long-Term Auto Les Accumulated depreciation Nintendo Pr 3-37 P 4:26 Pr5-27 75,000 30,000 474500 + C D Total assets $ 437,500 Total liabilities and equity S437.500 *Usenet fixed assets in computing fixed asset turnover SMITH CORPORATION $ Sales on credit) Cost of goods sold 1,000,000 600,000 $ Gross profit Selling and administrative expense Less: Depreciation expense 400,000 224,000 50,000 $ Operating profit Interest expense 126,000 21,000 $ Earnings before taxes Tax Expense 105,000 52,500 Net income $ 52.500 Includes $7,000 in lease payments. 1. Compute the following ratios in the table below. Use 360 days in a year. Enter only numerical to 2 decimal places 2. To which one would you, as credit manager for a supplier, approve the extension of short-term) Compute all ratlos before answering in which one would you buy stocks? Why? b. All input values are shown in yellow. Only these values need changed to review sigo versions Answers we displayed in red. Input variables Jones Corporation: Cash Accounts receivable Inventory Total current assets Gross plant and equipment Accumulated depreciation Net plant and equipment Total assets $0 (input as positive) $0 $0 Pr 3-37 Pr 4-26 Pr 5-27 J D $0 Accounts payable Bonds payable long term) Total abilities Common stock Capital paid in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $0 $0 $0 Credit sales Cost of goods sold Gross profit Selling and administrative pense Depreciation Operating profit (BIT) Interest pense Earnings before taves (ET) Taxes Earning after taxes (AT) $0 so SO Lease payments included in S&Aep Number of days in year 360 Smith Corporation + Marketable securities Accounts receivable Inventory Total current assets Gross plant and equipment Accumulated depreciation Net plant and equipment Total SO input as positive $0 SO $0 Accounts payable Bonds payable long-term) Totallibilities Common stock Capital and incess of par Nained earning Total stockholders equity Total abilities and stockholders equity $0 $0 Credits Cost of gods sold Grosspot Selling and writive expense Depreciation Operating profit $0 $0 Earnings before ET) Taxes Earning taxes (EAT $0 50 Lease payments included in Sep Pr 3-37 PY 3-37 Pr 4-26 Pr5-27 Insert Draw Page Layout Formulas Data Review View Tell me Calibri (Body) X Cut b Copy ~ Format 11 ' == w Wrap Text General B ilillll IU v A Merge & Center $ % : A H WUSSOS Selling and administrative expense Depreciation Operating profit (EBIT) Interest expense Earnings before taxes (ET) $0 $0 Earnings after taxes (EAT) $0 Lease payments included in S&A exp Solution and Explanation: Jones Corp Smith Corp Profit margin Return on assets Return on equity Receivables turnover Average collection period Inventory turnover Rxed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned Fixed charge coverage times days times times times days times times times Times time times times times times times +
