Compute the following ratios. Note: 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 Find the profit margin, return on assets(investments), return on 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, and fixed charge coverage. For each Corpora

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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Compute the following ratios. Note: 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

Find the profit margin, return on assets(investments), return on 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, and fixed charge coverage. For each Corporation.

Cash
Marketable securities
Accounts receivable
Inventory
Total assets
Gross fixed assets
Less: Accumulated depreciation
Net fixed assets*
Sales (on credit)
Cost of goods sold
Current Assets
Long-Term Assets
Depreciation expense
Operating profit
Interest expense
Earnings before taxes
*Use net fixed assets in computing fixed asset turnover.
Tax expense
Net income
Gross profit
Selling and administrative expense*
SMITH CORPORATION
SMITH CORPORATION
$ 557,000
251,800
$ 44,000 Accounts payable
7,900
73,700
77,500
305, 200
$ 508,300
$ 1,430,000
919,000
$ 511,000
299,000
57,500
$ 154,500
30,600
$ 123,900
59,900
$ 64,000
Liabilities
Bonds payable (long term)
Stockholders' Equity
Common stock
Paid-in capital
Retained earnings
Total liabilities and equity
$ 83,700
290,000
$ 75,000
30,000
29,600
$ 508,300
Transcribed Image Text:Cash Marketable securities Accounts receivable Inventory Total assets Gross fixed assets Less: Accumulated depreciation Net fixed assets* Sales (on credit) Cost of goods sold Current Assets Long-Term Assets Depreciation expense Operating profit Interest expense Earnings before taxes *Use net fixed assets in computing fixed asset turnover. Tax expense Net income Gross profit Selling and administrative expense* SMITH CORPORATION SMITH CORPORATION $ 557,000 251,800 $ 44,000 Accounts payable 7,900 73,700 77,500 305, 200 $ 508,300 $ 1,430,000 919,000 $ 511,000 299,000 57,500 $ 154,500 30,600 $ 123,900 59,900 $ 64,000 Liabilities Bonds payable (long term) Stockholders' Equity Common stock Paid-in capital Retained earnings Total liabilities and equity $ 83,700 290,000 $ 75,000 30,000 29,600 $ 508,300
Cash
Accounts receivable
Inventory
Current Assets
Total assets
Gross fixed assets
Less: Accumulated depreciation
Net fixed assets*
Long-Term Assets
Sales (on credit)
Cost of goods sold
Gross profit
Selling and administrative expense
Tax expense
Net income
Depreciation expense
Operating profit
Interest expense
Earnings before taxes
JONES CORPORATION
+Includes $12,700 in lease payments.
$ 554,000
152, 300
*Use net fixed assets in computing fixed asset turnover.
$ 123,300 Accounts payable
183,600
56,800
401,700
$ 765,400
$ 1,255,000
678,000
$ 577,000
355,000
59,400
$ 162,600
11,300
$ 151,300
82,500
$ 68,800
Liabilities
Bonds payable (long term)
Stockholders' Equity
Common stock
Paid-in capital
Retained earnings
Total liabilities and equity
$ 176,000
89,600
$ 150,000
70,000
279,800
$ 765,400
Transcribed Image Text:Cash Accounts receivable Inventory Current Assets Total assets Gross fixed assets Less: Accumulated depreciation Net fixed assets* Long-Term Assets Sales (on credit) Cost of goods sold Gross profit Selling and administrative expense Tax expense Net income Depreciation expense Operating profit Interest expense Earnings before taxes JONES CORPORATION +Includes $12,700 in lease payments. $ 554,000 152, 300 *Use net fixed assets in computing fixed asset turnover. $ 123,300 Accounts payable 183,600 56,800 401,700 $ 765,400 $ 1,255,000 678,000 $ 577,000 355,000 59,400 $ 162,600 11,300 $ 151,300 82,500 $ 68,800 Liabilities Bonds payable (long term) Stockholders' Equity Common stock Paid-in capital Retained earnings Total liabilities and equity $ 176,000 89,600 $ 150,000 70,000 279,800 $ 765,400
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