Using the above financial statements for the Jackson Corporation, calculate the following ratios. a. Profitability ratios. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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JACKSON CORPORATION
Income Statement
For the Year Ending December 31, 20X1
Sales (on credit)
Cost of goods sold
Gross profit
Selling and administrative expenses
Operating profit (EBIT)
Interest expense
Earnings before taxes (EBT)
Taxes
Earnings after taxes (EAT)
$ 2,067,000
1,323,000
$ 744,000
516,000*
$ 228,000
30, 100
Profit margin
Return on assets (investment)
Return on equity
$ 197,900
83,000
$ 114,900
*Includes $39,600 in lease payments.
Using the above financial statements for the Jackson Corporation, calculate the following ratios.
a. Profitability ratios.
Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.
Profitability Ratios
%
%
%
Transcribed Image Text:JACKSON CORPORATION Income Statement For the Year Ending December 31, 20X1 Sales (on credit) Cost of goods sold Gross profit Selling and administrative expenses Operating profit (EBIT) Interest expense Earnings before taxes (EBT) Taxes Earnings after taxes (EAT) $ 2,067,000 1,323,000 $ 744,000 516,000* $ 228,000 30, 100 Profit margin Return on assets (investment) Return on equity $ 197,900 83,000 $ 114,900 *Includes $39,600 in lease payments. Using the above financial statements for the Jackson Corporation, calculate the following ratios. a. Profitability ratios. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. Profitability Ratios % % %
Assets
Current assets:
Cash
Marketable securities
Accounts receivable (net)
Inventory
Total current assets
Investments
Plant and equipment
Less: Accumulated depreciation
Net plant and equipment
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Notes payable
Accrued taxes
Total current liabilities
Long-term liabilities:
Bonds payable
Total liabilities
Stockholders' equity
Preferred stock, $ 50 par value
Common stock, $ 1 par value
Capital paid in excess of par
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
$ 611,000
272,000
$ 52,500
22,500
178,000
290,000
$ 543,000
66,200
339,000
$948,200
$ 95,100
78,700
12,000
$ 185,800
159,400
$ 345,200
$ 100,000
80,000
190,000
233,000
$ 603,000
$948,200
Transcribed Image Text:Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventory Total current assets Investments Plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity Preferred stock, $ 50 par value Common stock, $ 1 par value Capital paid in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 611,000 272,000 $ 52,500 22,500 178,000 290,000 $ 543,000 66,200 339,000 $948,200 $ 95,100 78,700 12,000 $ 185,800 159,400 $ 345,200 $ 100,000 80,000 190,000 233,000 $ 603,000 $948,200
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d. Debt utilization ratios.
Note: Do not round intermediate calculations. Input your debt to total assets answer as a percent rounded to 2 decimal places.
Round your other answers to 2 decimal places.
Debt to total assets
Times interest earned
Fixed charge coverage
Debt Utilization Ratios
%
times
times
Transcribed Image Text:d. Debt utilization ratios. Note: Do not round intermediate calculations. Input your debt to total assets answer as a percent rounded to 2 decimal places. Round your other answers to 2 decimal places. Debt to total assets Times interest earned Fixed charge coverage Debt Utilization Ratios % times times
Receivable turnover
Average collection period
Inventory turnover
Fixed asset turnover
Total asset turnover
Current ratio
Quick ratio
Assets Utilization Ratios
c. Liquidity ratios.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Liquidity Ratios
times
times
times
days
times
times
times
Transcribed Image Text:Receivable turnover Average collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Assets Utilization Ratios c. Liquidity ratios. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Liquidity Ratios times times times days times times times
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