Chapter 13 Homework Saved 15 Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2017, were inventory, $50,900; total assets, $249,400; common stock, $87,000, and retained earnings, $39,497.) points CABOT CORPORATION Income Statement For Year Ended December 31, 2018 Sales $ 456,600 Cost of goods sold 298,050 Gross profit 158,550 Operating expenses 98,900 Interest expense 4,300 Income before taxes 55,350 Income tax expense 22,297 Net income 33,053 eBook Print References $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2018 Liabilities and Equity 22,000 Accounts payable 8,000 Accrued wages payable 33,000 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 149,300 Retained earnings $ 255,450 Total liabilities and equity 17,500 3,000 4,000 Prepaid expenses Plant assets, net Total assets 71,400 87,000 72,550 $ 255,450 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 2 Reg 3 Req 4 Req 5 Reg 6 Req 7 ? Reg 8 Req8 Reg 9 Rege Reg 10 Req 10 Reg 11 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denominator: Choose Numerator: 1 = = = Current Ratio Current ratio t01 2018: id (2) Acid-Test Ratio Choose Denominator: Choose Numerator: = Acid-Test Ratio Acid-Test Ratio to 1 2018: Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: x Choose Numerator: I Days = = Days Sales Uncollected Days sales uncollected days 2018: Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the inventory turnover. (4) Inventory Turnover 1 Choose Denominator Choose Numerator: = = Inventory Turnover Inventory tumover 2018: times Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Rego Req? Req 7 Reqs Reg 8 Reg 9 Rega Req 10 Reg 10 Reg 11 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory | Choose Denominator: ~ Days Choose Numerator: - Days' Sales in Inventory Days' sales in inventory days 2018: x = Req 1 and 2 Req 1 and 2 Reg 3 Rea 3 Req 4 Rega Req 5 Rea 5 Reg 6 Rego Req 7 Rea? Reg 8 Rego Reg 9 Rege Reg 10 Reg 10 Reg 11 Reg 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: = Debt-to-Equity Ratio Debt-to-equity ratio 2018: to 1 Req 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the times interest earned. Times Interest Earned 1 Choose Denominator: Choose Numerator: = Times Interest Earned = Times interest earned 2018: times Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio I Choose Denominator: Choose Numerator: = Profit margin ratio Profit margin ratio 2018: Req7 Reg9> Reg 1 and 2 Reg 3 Reg 4 Reg 4 Reg 5 Rege Reg 6 Req Reg 8 Reqs Reg 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover 1 Choose Denominator: Choose Numerator: = Total Asset Turnover Total asset turnover times 2018: Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets I Choose Denominator: = | = Return on Total Assets Return on total assets 2018: Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on common stockholders' equity. (11) Choose Numerator: 1 Return on Common Stockholders' Equity. Choose Denominator = Return On Common Stockholders' Equity = Return on common stockholders' equity
