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Given the financial statements for Jones Corporation and Smith Corporation:

JONES CORPORATIONCurrent AssetsLiabilitiesCash$ 29,300Accounts payable$ 186,000Accounts receivable89,000Bonds payable (long term)87,600Inventory53,100Long-Term AssetsStockholders' EquityGross fixed assets$ 560,000Common stock$ 150,000Less: Accumulated depreciation151,300Paid-in capital70,000Net fixed assets*Note asterisk408,700Retained earnings86,500Total assets$ 580,100Total liabilities and equity$ 580,100Sales (on credit)$ 1,286,000Cost of goods sold738,000Gross profit$ 548,000Selling and administrative expense^{Note dagger}331,000Depreciation expense52,700Operating profit$ 164,300Interest expense14,000Earnings before taxes$ 150,300Tax expense99,000Net income$ 51,300

*Net fixed assets Note asteriskUse net fixed assets in computing fixed asset turnover.

Selling and administrative expense Note daggerIncludes $16,900 in lease payments.

SMITH CORPORATIONCurrent AssetsLiabilitiesCash$ 44,900Accounts payable$ 79,900Marketable securities15,300Bonds payable (long term)261,000Accounts receivable72,200Inventory78,300Long-Term AssetsStockholders' EquityGross fixed assets$ 565,000Common stock$ 75,000Less: Accumulated depreciation250,400Paid-in capital30,000Net fixed assets*Note asterisk314,600Retained earnings79,400Total assets$ 525,300Total liabilities and equity$ 525,300

*Net fixed assets Note asteriskUse net fixed assets in computing fixed asset turnover.

SMITH CORPORATIONSales (on credit)$ 1,230,000Cost of goods sold739,000Gross profit$ 491,000Selling and administrative expense^{Note dagger}288,000Depreciation expense54,700Operating profit$ 148,300Interest expense24,200Earnings before taxes$ 124,100Tax expense62,200Net income$ 61,900

^{Selling and administrative expense Note dagger}Includes $16,900 in lease payments.

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