Find the following ratios with the information provided by the balance sheet.
a.??Current ratio
b.??Operating return on assets
c.??Times interest earned
d.??Debt ratio
e.??Inventory turnover
f.??Average collection period
g.??Total asset turnover
h.??Fixed asset turnover
i.??Operating profit marginj
j.??Return on equity
Cash $ 506
Accounts receivable 2,002
Inventories 1,003
Current assets $ 3,511
Net fixed assets 4,521
Total assets $ 8,032
Accounts payable $ 1,101
Accrued expenses 619
Short-term notes payable 284
Current liabilities $ 2,004
Long-term debt 1,981
Owners' equity 4,047
Total liabilities and owners' equity 8,032
Net sales (all credit) $ 7,976
Cost of goods sold -3,284
Gross profit $ 4,692
Operating expenses (includes $509 depreciation) -3,000
Operating income $ 1,692
Interest expense -344
Earnings before taxes $ 1,348
Income taxes (40%) -539
Net income 809
Find the following ratios with the information provided by the balance sheet.
a.??Current ratio
b.??Operating return on assets
c.??Times interest earned
d.??Debt ratio
e.??Inventory turnover
f.??Average collection period
g.??Total asset turnover
h.??Fixed asset turnover
i.??Operating profit marginj
j.??Return on equity
Cash $ 506
Accounts receivable 2,002
Inventories 1,003
Current assets $ 3,511
Net fixed assets 4,521
Total assets $ 8,032
Accounts payable $ 1,101
Accrued expenses 619
Short-term notes payable 284
Current liabilities $ 2,004
Long-term debt 1,981
Owners' equity 4,047
Total liabilities and owners' equity 8,032
Net sales (all credit) $ 7,976
Cost of goods sold -3,284
Gross profit $ 4,692
Operating expenses (includes $509 depreciation) -3,000
Operating income $ 1,692
Interest expense -344
Earnings before taxes $ 1,348
Income taxes (40%) -539
Net income 809
Related questions
| Millions of USD (except for per share items) | 2015 | 2014 | |
| Sales | $ 114,826 | $ 114,960 | |
| Cost of Goods Sold | 86,483 | 86,714 | |
| Gross Profit | 28,343 | 28,246 | |
| Selling/General/Admin. Expenses, Total | 22,663 | 22,053 | |
| Operating Income | 5,680 | 6,193 | |
| Interrest and Taxes | 2,336 | 2,600 | |
| Net Income | $ 3,344 | $ 3,593 | |
| Market Price/Share | $ 65.68 | $ 84.26 | |
| Shares Outstanding | 3,210 | 3,210 |
| Millions of USD (except for per share items) | As of 2015 | As of 2014 |
| Cash & Equivalents | $ 7,759 | $ 6,012 |
| Total Receivables, Net | 5,813 | 6,096 |
| Total Inventory | 46,310 | 45,315 |
| Prepaid Expenses | 2,251 | 1,811 |
| Total Current Assets | 62,133 | 59,687 |
| Property/Plant/Equipment, Total - Gross | 138,614 | 142,830 |
| Total Assets | $ 200,747 | $ 202,517 |
| Accounts Payable | 37,224 | 36,347 |
| Accrued Expenses | 18,685 | 17,807 |
| Notes Payable/Short Term Debt | 799 | 3,517 |
| Current Port. of LT Debt/Capital Leases | 6,468 | 3,566 |
| Other Current liabilities, Total | 6,448 | 6,684 |
| Total Current Liabilities | 69,624 | 67,921 |
| Total Long Term Debt | 42,964 | 48,233 |
| Deferred Income Tax | 8,169 | 8,164 |
| Minority Interest | 3,416 | 5,111 |
| Total Liabilities | 124,173 | 129,429 |
| Total Equity | 76,574 | 73,088 |
| Total Liabilities & Shareholders' Equity | 200,747 | 202,517 |
| - | - | |
| Total # Common Shares Outstanding | $ 3,227 | $ 3,230 |
| Category | Two Ratios from Each Category | Ratio | Formula | 2015 | 2014 | |
| Liquidity | Current and Quick Ratio | Current | Current Assests/Current Liabilites | |||
| Quick | (CA - Inventories)/Current Liabilites | |||||
| Asset Management | Total Assets Turnover, Total Fixed Asset Turnover | Total Assets Turnover, | Sales/Total Assets | |||
| Total Fixed Asset Turnover | Sales/Total Fixed Assets | |||||
| Debt Management | Debt to Assets and Debt to Equity | Debt to Assets | Total Liabilities / Total Assests | |||
| Debt to Equity | Total Liabilities / Common Stockholders Equity | |||||
| Profitability Ratio | Return on Assets and Return on Equity | Return on Assets | Net Income/Total Assets | |||
| Return on Equity | Net Income/Common Equity | |||||
| Market Ratio | Earnings Per Share and Price to Earnings Ratio | Earnings Per Share | Net Income / Common Shares Outstanding | |||
| Price to Earnings Ratio | Market Price of Shares/Earning Per Share |
Given the financial statements for Jones Corporation and SmithCorporation:
| JONES CORPORATION | |||||||
| Current Assets | Liabilities | ||||||
| Cash | $ | 22,000 | Accounts payable | $ | 127,000 | ||
| Accounts receivable | 81,100 | Bonds payable (long term) | 85,600 | ||||
| Inventory | 50,000 | ||||||
| Long-Term Assets | Stockholders' Equity | ||||||
| Gross fixed assets | $ | 526,000 | Common stock | $ | 150,000 | ||
| Less: Accumulated depreciation | 150,700 | Paid-in capital | 70,000 | ||||
| Net fixed assets* | 375,300 | Retained earnings | 95,800 | ||||
| Total assets | $ | 528,400 | Total liabilities and equity | $ | 528,400 | ||
| Sales (on credit) | $ | 1,326,000 |
| Cost of goods sold | 790,000 | |
| Gross profit | $ | 536,000 |
| Selling and administrative expenseâ | 304,000 | |
| Depreciation expense | 59,800 | |
| Operating profit | $ | 172,200 |
| Interest expense | 14,500 | |
| Earnings before taxes | $ | 157,700 |
| Tax expense | 99,600 | |
| Net income | $ | 58,100 |
*Use net fixed assets in computing fixed asset turnover.
â Includes $13,500 in lease payments.
| SMITH CORPORATION | |||||||
| Current Assets | Liabilities | ||||||
| Cash | $ | 38,400 | Accounts payable | $ | 83,300 | ||
| Marketable securities | 12,700 | Bonds payable (long term) | 217,000 | ||||
| Accounts receivable | 74,300 | ||||||
| Inventory | 83,700 | ||||||
| Long-Term Assets | Stockholders' Equity | ||||||
| Gross fixed assets | $ | 504,000 | Common stock | $ | 75,000 | ||
| Less: Accumulated depreciation | 255,800 | Paid-in capital | 30,000 | ||||
| Net fixed assets* | 248,200 | Retained earnings | 52,000 | ||||
| Total assets | $ | 457,300 | Total liabilities and equity | $ | 457,300 | ||
*Use net fixed assets in computing fixed asset turnover.
| SMITH CORPORATION | ||
| Sales (on credit) | $ | 1,100,000 |
| Cost of goods sold | 640,000 | |
| Gross profit | $ | 460,000 |
| Selling and administrative expenseâ | 272,000 | |
| Depreciation expense | 56,500 | |
| Operating profit | $ | 131,500 |
| Interest expense | 24,300 | |
| Earnings before taxes | $ | 107,200 |
| Tax expense | 56,500 | |
| Net income | $ | 50,700 |
â Includes $13,500 in lease payments.
a. Compute the following ratios. (Use a360-day year. Do not round intermediate calculations. Input yourprofit margin, return on assets, return on equity, and debt tototal assets answers as a percent rounded to 2 decimal places.Round all other answers to 2 decimal places.)
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