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Wk. 1 Assignment - Ch. 3

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Item 4

Using the financial statements for the Jackson Corporation, calculate the 13 basic ratios found in the chapter.

JACKSON CORPORATION
Balance Sheet
December 31, 20X1
Assets
Current assets:
Cash		$ 52,200
Marketable securities		24,400
Accounts receivable (net)		222,000
Inventory		238,000
Total current assets		$ 536,600
Investments		65,900
Plant and equipment	$ 615,000
Less: Accumulated depreciation	271,000
Net plant and equipment		344,000
Total assets		$ 946,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$ 93,400
Notes payable		70,600
Accrued taxes		17,000
Total current liabilities		$ 181,000
Long-term liabilities:
Bonds payable		153,200
Total liabilities		$ 334,200
Stockholders' equity
Preferred stock, $ 50 par value		$ 100,000
Common stock, $ 1 par value		80,000
Capital paid in excess of par		190,000
Retained earnings		242,300
Total stockholders' equity		$ 612,300
Total liabilities and stockholders' equity		$ 946,500

JACKSON CORPORATION
Income Statement
For the Year Ending December 31, 20X1
Sales (on credit)	$ 2,064,000
Cost of goods sold	1,313,000
Gross profit	$ 751,000
Selling and administrative expenses	496,000*Note asterisk
Operating profit (EBIT)	$ 255,000
Interest expense	26,900
Earnings before taxes (EBT)	$ 228,100
Taxes	83,300
Earnings after taxes (EAT)	$ 144,800

*Selling and administrative expenses Note asteriskIncludes $36,100 in lease payments.

Using the above financial statements for the Jackson Corporation, calculate the following ratios.