iven the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 81,900 Accounts payable $ 136,000 Accounts receivable 188,000 Bonds payable (long term) 89,500 Inventory 51,200 Long-Term Assets Stockholders' Equity Gross fixed assets $ 555,000 Common stock $ 150,000 Less: Accumulated depreciation 151,000 Paid-in capital 70,000 Net fixed assets* 404,000 Retained earnings 279,600 Total assets $ 725,100 Total liabilities and equity $ 725,100 Sales (on credit) $ 1,255,000 Cost of goods sold 816,000 Gross profit $ 439,000 Selling and administrative expense† 266,000 Depreciation expense 55,500 Operating profit $ 117,500 Interest expense 10,000 Earnings before taxes $ 107,500 Tax expense 96,200 Net income $ 11,300 *Use net fixed assets in computing fixed asset turnover. †Includes $11,700 in lease payments. SMITH CORPORATION Current Assets Liabilities Cash $ 39,400 Accounts payable $ 84,000 Marketable securities 10,900 Bonds payable (long term) 233,000 Accounts receivable 72,300 Inventory 76,900 Long-Term Assets Stockholders' Equity Gross fixed assets $ 561,000 Common stock $ 75,000 Less: Accumulated depreciation 259,700 Paid-in capital 30,000 Net fixed assets* 301,300 Retained earnings 78,800 Total assets $ 500,800 Total liabilities and equity $ 500,800 *Use net fixed assets in computing fixed asset turnover. SMITH CORPORATION Sales (on credit) $ 1,790,000 Cost of goods sold 1,270,000 Gross profit $ 520,000 Selling and administrative expense† 315,000 Depreciation expense 51,500 Operating profit $ 153,500 Interest expense 21,900 Earnings before taxes $ 131,600 Tax expense 52,900 Net income $ 78,700 †Includes $11,700 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 margin Return on assets (investments) Return o equity

iven the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 81,900 Accounts payable $ 136,000 Accounts receivable 188,000 Bonds payable (long term) 89,500 Inventory 51,200 Long-Term Assets Stockholders' Equity Gross fixed assets $ 555,000 Common stock $ 150,000 Less: Accumulated depreciation 151,000 Paid-in capital 70,000 Net fixed assets* 404,000 Retained earnings 279,600 Total assets $ 725,100 Total liabilities and equity $ 725,100 Sales (on credit) $ 1,255,000 Cost of goods sold 816,000 Gross profit $ 439,000 Selling and administrative expense† 266,000 Depreciation expense 55,500 Operating profit $ 117,500 Interest expense 10,000 Earnings before taxes $ 107,500 Tax expense 96,200 Net income $ 11,300 Use net fixed assets in computing fixed asset turnover. †Includes $11,700 in lease payments. SMITH CORPORATION Current Assets Liabilities Cash $ 39,400 Accounts payable $ 84,000 Marketable securities 10,900 Bonds payable (long term) 233,000 Accounts receivable 72,300 Inventory 76,900 Long-Term Assets Stockholders' Equity Gross fixed assets $ 561,000 Common stock $ 75,000 Less: Accumulated depreciation 259,700 Paid-in capital 30,000 Net fixed assets 301,300 Retained earnings 78,800 Total assets $ 500,800 Total liabilities and equity $ 500,800 *Use net fixed assets in computing fixed asset turnover. SMITH CORPORATION Sales (on credit) $ 1,790,000 Cost of goods sold 1,270,000 Gross profit $ 520,000 Selling and administrative expense† 315,000 Depreciation expense 51,500 Operating profit $ 153,500 Interest expense 21,900 Earnings before taxes $ 131,600 Tax expense 52,900 Net income $ 78,700 †Includes $11,700 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 margin Return on assets (investments) Return o equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Given the financial statements for Jones Corporation and Smith Corporation:

JONES CORPORATION
Current Assets	Liabilities
Cash			$	81,900	Accounts payable	$	136,000
Accounts receivable				188,000	Bonds payable (long term)		89,500
Inventory				51,200
Long-Term Assets	Stockholders' Equity
Gross fixed assets	$	555,000			Common stock	$	150,000
Less: Accumulated depreciation		151,000			Paid-in capital		70,000
Net fixed assets*				404,000	Retained earnings		279,600
Total assets			$	725,100	Total liabilities and equity	$	725,100


Sales (on credit)	$	1,255,000
Cost of goods sold		816,000
Gross profit	$	439,000
Selling and administrative expense^†		266,000
Depreciation expense		55,500
Operating profit	$	117,500
Interest expense		10,000
Earnings before taxes	$	107,500
Tax expense		96,200
Net income	$	11,300

*Use net fixed assets in computing fixed asset turnover.
†Includes $11,700 in lease payments.

SMITH CORPORATION
Current Assets	Liabilities
Cash			$	39,400	Accounts payable	$	84,000
Marketable securities				10,900	Bonds payable (long term)		233,000
Accounts receivable				72,300
Inventory				76,900
Long-Term Assets	Stockholders' Equity
Gross fixed assets	$	561,000			Common stock	$	75,000
Less: Accumulated depreciation		259,700			Paid-in capital		30,000
Net fixed assets*				301,300	Retained earnings		78,800
Total assets			$	500,800	Total liabilities and equity	$	500,800

*Use net fixed assets in computing fixed asset turnover.

SMITH CORPORATION
Sales (on credit)	$	1,790,000
Cost of goods sold		1,270,000
Gross profit	$	520,000
Selling and administrative expense^†		315,000
Depreciation expense		51,500
Operating profit	$	153,500
Interest expense		21,900
Earnings before taxes	$	131,600
Tax expense		52,900
Net income	$	78,700

^†Includes $11,700 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 margin

Return on assets (investments)

Return o equity

Receivable turnover

Average collection period

Inventory turnover

Fixed asset Turnover

Total asset turnover

Current ratio

Quick ratio

Debt to total assets

Times interest earned

Fixed charge coverage

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

imcomplete i still need

Inventory turnover
Current ratio
Quick ratio
Fixed charge coverage

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.