The financial statements for Jones Corporation and Smith Corporation are shown below. (Use 365 days in...
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The financial statements for Jones Corporation and Smith Corporation are shown below. (Use 365 days in a year. Round the answers in days to whole number and other final answers to 1 decimal places.) JONES CORPORATION Current Assets Cash Accounts receivable Inventory Total current assets Long-Term Assets Capital assets Acc. amortization Net capital assets $ 20,000 80,000 50,000 150,000 500,000 150,000 350,000 $ 500,000 Sales (on credit) Cost of goods sold Gross profit Selling and administrative expense Amortization expense Operating profit Interest expense Earnings before taxes Tax expense (50%) Net income $ 1,250,000 750,000 500,000 257,000 50,000 193,000 8,000 $ Accounts payable Bonds payable (long-term) Total liabilities Common stock Retained earnings 185,000 92,500 92,500 Liabilities "Includes $7,000 in lease payments. Note: Jones Corporation has 75.000 shares outstanding. Shareholders' Equity: $ 100,000 80,000 180,000 220,000 100,000 $ 500,000 The financial statements for Jones Corporation and Smith Corporation are shown below. (Use 365 days in a year. Round the answers in days to whole number and other final answers to 1 decimal places.) JONES CORPORATION Current Assets Cash Accounts receivable Inventory Total current assets Long-Term Assets Capital assets Acc. amortization Net capital assets $ 20,000 80,000 50,000 150,000 500,000 150,000 350,000 $ 500,000 Sales (on credit) Cost of goods sold Gross profit Selling and administrative expense Amortization expense Operating profit Interest expense Earnings before taxes Tax expense (50%) Net income $ 1,250,000 750,000 500,000 257,000 50,000 193,000 8,000 $ Accounts payable Bonds payable (long-term) Total liabilities Common stock Retained earnings 185,000 92,500 92,500 Liabilities "Includes $7,000 in lease payments. Note: Jones Corporation has 75.000 shares outstanding. Shareholders' Equity: $ 100,000 80,000 180,000 220,000 100,000 $ 500,000
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Lets calculate the ratios for both Jones Corporation and Smith Corporation a1 Compute all ratios for both companies Jones Corporation Profit Margin Net Income Sales 100 92500 1250000 100 74 Return on ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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