Part B. To which one would you, as a credit manager for a supplier, approve the extension of (short-term) credit term? Why?

Part C: In which one would you buy stock? Why?

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Smith Corporation: 1. Profit Margin: 5.25% 2. Return on Assets (ROA): 12.00% 3. Return on Equity (ROE): 34.43% 4. Receivables Turnover: 14.29 times 5. Average Collection Period: 25.55 days 6. Inventory Turnover: 13.33 times 7. Fixed Asset Turnover: 4.00 times 8. Total Asset Turnover: 2.29 times 9. Current Ratio: 2.50 times 10. Quick Ratio: 1.50 times 11. Debt to Total Assets: 65.14% 12. Times Interest Earned: 6.00 times Jones Corporation: 1. Profit Margin: 7.40% 2. Return on Assets (ROA): 18.50% 3. Return on Equity (ROE): 28.91% 4. Receivables Turnover: 15.63 times 5. Average Collection Period: 23.36 days 6. Inventory Turnover: 25.00 times 7. Fixed Asset Turnover: 3.57 times 8. Total Asset Turnover: 2.50 times 9. Current Ratio: 1.50 times 10. Quick Ratio: 1.00 times 11. Debt to Total Assets: 36.00% 12. Times Interest Earned: 24.13 times Smith Corporation: 1. Profit Margin: 5.25% 2. Return on Assets (ROA): 12.00% 3. Return on Equity (ROE): 34.43% 4. Receivables Turnover: 14.29 times 5. Average Collection Period: 25.55 days 6. Inventory Turnover: 13.33 times 7. Fixed Asset Turnover: 4.00 times 8. Total Asset Turnover: 2.29 times 9. Current Ratio: 2.50 times 10. Quick Ratio: 1.50 times 11. Debt to Total Assets: 65.14% 12. Times Interest Earned: 6.00 times Jones Corporation: 1. Profit Margin: 7.40% 2. Return on Assets (ROA): 18.50% 3. Return on Equity (ROE): 28.91% 4. Receivables Turnover: 15.63 times 5. Average Collection Period: 23.36 days 6. Inventory Turnover: 25.00 times 7. Fixed Asset Turnover: 3.57 times 8. Total Asset Turnover: 2.50 times 9. Current Ratio: 1.50 times 10. Quick Ratio: 1.00 times 11. Debt to Total Assets: 36.00% 12. Times Interest Earned: 24.13 times