Chap 13 Homework 2Fms.mbeducation.com%252Fmghmiddlew Saved 7 14.32 points eBook Print 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, $47,900, total assets, $179,400; common stock. $83,000; and retained earnings, $42,965) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net Income $ 454,600 296,850 157,750 98,500 4,600 54,650 22,015 $ 32,635 O References Mc Graw Hill Assets Cash Short-term investments Accounts receivable, net $ Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 14,000 Accounts payable, 8,800 Accrued wages payable 29,400 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets $ 15,500 4,600 3,400 66,400 Prepaid expenses Plant assets, net Total assets 2,850 Common stock $3,000 153,300 Retained earnings 75,600 $ 248,500 Total liabilities and equity $ 248,500 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inventor (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) retur on common stockholders' equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Reg 5 Req 6 Req 7 Req B Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio, < Prev 7 of 7 Next References 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. Req 1 and 21 Reg 3 Req 4 Req 5 Req 6 Reg 7 Reg S Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current Ratio Choose Denominator:: Current Ratio Current ratio to 11 (2) Acid Test Ratio Choose Numerator: Choose Denominator: Acid Test Ratio Acid-Test Rado Req3 > to 11 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 91 Req 10 Req 11 Compute the days' sales uncollected. (3) Choose Numerator: Days Sales Uncollected Choose Denominator: x Days Days Sales Uncollected Days sales uncollected x days Compute the inventory turnover. (4) Choose Numerator: Inventory Turnover Choose Denominator: Inventory Turnover Inventory turnover times Compute the days' sales in inventory. (5) Choose Numerator: Days Sales in Inventory Choose Denominator: x Days Days' Sales in Inventory X Days' sales in inventory days Compute the debt-to-equity ratio. (6) Choose Numerator: Debt to Equity Ratio Choose Denominator: Debt-to-Equity Ratio Debt-to-equity ratio to 1 < Req 5 Req 7 > * Compute the times Interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned B Times interest eamed Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio Choose Denominator: Profit margin ratio Profit margin ratio % Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: Total Asset Turnover Total asset turnover times Compute the return on total assets. (10) Choose Numerator: Return on Total Assets Choose Denominator: Return on Total Assets Return on total assets < Req 9 Req 11 > Compute the return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity 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, $47,900; total assets, $179,400; common stock, $83,000, and retained earnings. $42,965) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net Income $ 454,600 296,850 157,750 98,500 4,600 54,650 22,015 $ 32,635 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 14,000 Accounts payable 15,500 8,800 Accrued wages payable 4,600 29,400 Income taxes payable 3,400 40,150 Long-term note payable, secured by mortgage on plant assets 66,400 2,850 Common stock 83,000) 153,300 Retained earnings 75,600 $248,500 Total liabilities and equity $ 248,500 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.) Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current Ratio Choose Denominator: (2) Acid Test Ratio Choose Numerator: Choose Denominator: Current Ratio Current ratio 0 to 1 Acid-Test Ratio Acid-Test Ratio 0 to 1 Compute the days' sales uncollected. (3) Days Sales Uncollected Choose Numerator: 1 Choose Denominator: x Days Days Sales Uncollected x x Days sales uncollected 0 days a Req 11 Compute the inventory turnover. (4) Choose Numerator: 7 Inventory Turnover Choose Denominator: Inventory Turnover Inventory turnover 0 times Compute the days' sales in inventory. (5) Choose Numerator: Days' Sales in Inventory Choose Denominator: x Days -Days' Sales in Inventory Days' sales in inventory 0 days (6) the debt-to-equity ratio. Choose Numerator: Debt-to-Equity Ratio Choose Denominator: Debt to Equity Ratio Debt-to-equity ratio 0 to 1 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator:: Times Interest Eamed Times interest earned 0 times Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio 7 Choose Denominator: Profit margin ratio Profit margin ratio 0 % Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: Total Asset Turnover Total asset turnover 0 times Reg 9 E Compute the return on total assets. (10) Choose Numerator: Return on Total Assets 1 Choose Denominator: Return on Total Assets Return on total assets 0% Req 11 (11) Choose Numerator: Beturn on Common Stockholders Equity Choose Denominator Return On Common Stockholders' Equity Refum on common stockholders' equity