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Smith Inc. ($) Jones Corp. ($) $ 40,000 Assets Current Assets Cash Cash Equivalents A/R Inventory Total Current Assets Capital Assets Capital Assets Acc.Deprec. Net Capital Assets Total Assets $ $ $ 80,000 105.000 225,000 $ $ $ $ $ 35,000 7,500 90,000 75.000 207,500 $ $ $ $ 450,000 (150.000) 300,000 525,000 $ $ $ $ 500,000 (220,000 280,000 487,500 $ $ $ 100,000 105,000 205,000 $ $ $ 80,000 210,000 290,000 Liabilities A/P Longterm Bonds Payable Total Liabilities Shareholder's Equity Common Stock Retained Earnings Total Shareholder's Equity Total Liabilities and S/E (note: shares outstanding) $ 220,000 $ 100,000 $ 320,000 $ 525,000 100,000 $ 140,000 $ 57,500 $ 197,500 $ 487,500 75,000 Sales COGS Gross Profit Selling & Admin exp Depreciation exp Op. Profit Interest exp Earnings Before Taxes Tax exp Net Income $ $ $ $ $ $ $ $ $ $ 1,250,000 750.000 500,000 257,000 50,000 193,000 8.000 185,000 92,500 92,500 $ 1,000,000 $ 690.000 $ 310,000 $ 194,000 $ 43,000 $ 73,000 $ 21.000 $ 52,000 $ 26,000 $ 26,000 2. Based on the handout for Smith Inc. and Jones Corp., (i) calculate the following ratios, figures, and/or Percentages; (ii) for each item (a through h), circle the company that has the better result and then, (iii) indicate which company is in better financial shape overall, BASED ON THE ANSWERS YOU HAVE CALCULATED. (10 marks) (NOTE: just use year-end information; no average values available) a. Working Capital: Smith: Jones: b. Days of Sales in Inventory: Smith: Jones: c. Quick Ratio: Smith: Jones: d. Profit Margin: Smith: Jones: e. Days of Accounts Payable: Smith: Jones: f. Return on Common Shareholders' Equity: Smith: Jones: The Company in better financial shape is