The Following Financial Statements Are Available for Jerry Company $\quad$

question 78

Essay

The following financial statements are available for Jerry Company:

$\quad$ $\quad$ $\quad$ $\quad$$\text { Comparative Income Statements }$
$\text { For the Years Ending December } 31,2 \times 13 \text { and } 2 \times 12$

$\quad$$\begin{array}{lrr}&\underline{2 X 13}& \underline{2 X} 12 \\\text { Sales (all credit) } & \$ 750 & \$ 690 \\\text { Cost of Goods Sold } &\underline{ 440 }& \underline{400}\\\text { Gross Profit } & \$ 310 & \$ 290 \\\text { Less: Operating Expenses } & \underline{220} & \underline{205}\\\text { Operating Income } & \$ 90 & \$ 85 \\\text { Less: Income Tax Expense } & \underline{40} & \underline{37} \\\text { Net Income } & \underline{\$ 50}& \underline{\underline{48}}\end{array}$

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\quad$$\quad$$\text { Comparative Balance Sheets }$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31,2 \times 13 \text { and } 2 \times 12$

$\begin{array}{l}\begin{array}{lll}&\underline{2 X 13}& \underline{2 X} 12 \\ \underline{\text { Current Assets: }} \\ \text { Cash } & \$ 20 & \$ 15 \\\text { Accounts Receivable } & 45 & 37 \\\text { Inventory } & \underline{60} & \underline{70} \\\text { Total Current Assets } & \$ 125 & \$ 122\\ \underline{\text { Long-Term Assets: }} \\\text { Equipment } & \$ 290 & \$ 200 \\\text { Less: Accum. Depr. } & \underline{(160)} & \underline{(140)} \\\text { Total Long-Term Assets } & \underline{\$ 130} & \underline{\$ 60}\\\\\\\text { Total Assets} & \underline{\$ 255} & \underline{\$ 180}\\\end{array}\begin{array}{lll}&\underline{2 X 13}& \underline{2 X} 12 \\\underline{ \text { Current Liabilities: }}\\\text { Accounts Payable } & \$ 24 & \$ 20 \\\text { Taxes Payable } & 11 & 15 \\\text { Note Pavable } & \underline{ 7} & \underline{18}\\\text { Total Current Liab. } & \$ \overline{42} & \$ \overline{53} \\\text { Long-Term Liabilities } & \underline{80} & \underline{30} \\\text { Total Liabilities } & \underline{\$ 122} & \underline{ \$ 83}\\\underline{ \text { Stockholders' Equity: }}\\\text { Common Stock } & \$ 40 & \$ 40 \\\text { Retained Earnings } & \underline{93} & \underline{59} \\\text { ockholders' Equity } &\underline{ \$ 133} &\underline{ \$ 99}\\\text { Total Liab. \& } \\\text { Stockholders' Equity } &\underline{ \$ 255} &\underline{ \$ 182}\\\end{array}\end{array}$
Use the above information to determine the following ratios for 2X13:
a.Quick ratio
b.Average collection period in days
c.Total-debt-to-total-equity
d.Pretax return on assets (ROA)
e.Return on common stockholder's equity (ROE)

---

Definitions:

Electronic Medical Record

A digital version of a patient's paper chart, which contains the medical and treatment history of a patient across different healthcare providers.

Financial Components

The fundamental parts of financial analysis including assets, liabilities, equity, income, and expenses.

Collection Agencies

Companies that specialize in recovering funds that are past due or owed by individuals or businesses.

Percentage of the Bill

The portion or fraction of a total bill calculated as a percentage, relevant in contexts like tips, discounts, or finance charges.