4A Saved Help Save & Exit Submit Check my work Selected current year-end financial statements of Cabot Corporation follow. (All sales were on Credit: selected balance sheet amounts at December 31 of the prior year were inventory $53,900, total assets, $209,400; common stock, $86,000, and retained earnings, $35,752.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 298,550 Gross profit 150,050 Operating expenses 98,700 Interest expense 4,800 Income before taxes 46,550 Income tax expense 18,752 Net income $ 27,798 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 9,200 Acerued wages payable 30,400 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,800 Common stock 153,300 Retained earnings $ 241,850 Total liabilities and equity $ 16,500 4,600 4.800 66,400 Prepaid expenses Plant assets, net Total assets 86,000 63,550 $ 241.850 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected. (4) Inventory turnover. (5) days' sales in inventory. (6) debt-to-equity ratio, 7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) return Prev 1 of 1 !!! Next > Help Save & Exit Submit Check my work Plant assets, net Total assets 153,300 Retained earnings $ 241,850 Total liabilities and equity 63,550 $ 241,850 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inventory, (6) debt-to-equity ratio. (7) times interest earned. (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Reg 9 Red 10 Reg 11 Compute the current ratio and acid-test ratio. Current Ratio Choose Denominator: Choose Numerator: 1 Current Ratio Current ratio / 1 to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: 1 1 Acid-Test Ratio Acid-Test Ratio to 1 1 land > Reg 3 Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned 1 = Times interest earned times 1 Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Reg 7 Req8 Req 9 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: 1 Profit margin ratio Profit margin ratio 1 / % Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg4 Reqs Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on common stockholders' equity. Return on Common Stockholders. Equity Choose Denominator Choose Numerator: - Return On Common Stockholders' E = Return on common stockholders' equity 1
