Jones Calculation Jones answer Ratio Formula 1 Profit Margin NI/SIS 2 ROA NI/Tot Ast 3 ROE NI/Equity 4 A/R Turn Credit Sis/AR 5 Avg. Col. Per AR/Avg. Daily Cr. Sis 6 Inv. Tum Sis/Inv 7 Fx Asset Turn Sis/NET Fx Ast 8 Tot. Ast. Turn Sls/Ast 9 Current Cur. Ast/Cur Lia 10 Quick Cur Ast-InvCur Lia 11 Debt/Tot. Ast. Total Lia Tot Ast 12 Times Int Earn Oper Prft Interest 13 Fx. Chrg. Cov. Oper Pr + Lease/ Lease + Int Liabilities Accounts payable Bonds payable (long-term) $ 22,000 89,000 58,000 JONES CORPORATION Current Assets Cash Accounts receivable Inventory Long-Term Assets Fixed assets Less: Accumulated depreciation Net fixed assets* Total assets $112,000 87,000 $565,000 (168,000) 397,000 $566.000 Stockholders' Equity Common stock Paid-in capital Retained earnings Total liab, and equity $157,000 90,000 120,000 $566.000 Sales (on credit) Cost of goods sold Gross profit Selling and administrative expense Less: Depreciation expense Operating profit Interest expense Earnings before taxes $1,390,000 821,000 569,000 281,000 56,000 232,000 9.000 223,000 101.000 $ 122,000 Tax expense Net income *Use net fixed assets in computing fixed asset turnover Includes $9.000 in lease payments. age 2 of 2 362 words D English (United States) 100 96 NOTE: Ratios should be displayed with two digits after the decimal place (as is reflected in the text on pages 78-79. (Even when the calculation results in a whole number, two decimals should be shown for clarity.) The only exception to this might be the Average Collection Period. This may be rounded up to show whole days