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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)
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.)
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $209,400; common stock, $86,000; and retained earnings, $44,112.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes 450,600 297,550 153, 050 98,600 4,400 50, 050 20,162 $ 29,888 Net income CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory 17,500 4,400 4,300 14,000 Accounts payable 9,400 Accrued wages payable 30,200 Income taxes payable 4,000 65,400 40,150 Long-term te payable, secured by no mortgage on plant assets 86,000 74,000 $ 251,600 Prepaid expenses Plant assets, net Total assets 2,550 Common stock 151,300 Retained earnings 251,600 Total liabilities and equity * These are short-term notes receivable arising from customer (trade) salesStep by Step Solution
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