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 $ 450,600 297,550 153,050 98,600 Sales Cost of goods sold Gross profit Operating expenses Interest expense 4,400 Income before taxes 50,050 Income taxes 20,162 Net income $ 29,888 ORPORTION Balance Sheet December 31, 2017 Assets Liabilities and Equity $ 14,000 Accounts payable 9,400 Accrued wages payable 30,200 4,000 $ 17,500 4,400 4,300 Cash Short-term investments Income taxes payable Accounts receivable, net Notes receivable (trade)* Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses Plant assets, net 2,550 Common stock 151,300 Retained earnings $ 251,600 Total liabilities and equity 6, 000 74,000 $ 251,600 Total assets *These are short-term notes receivable arising from customer (trade) sales.
Step by Step Solution
3.41 Rating (170 Votes )
There are 3 Steps involved in it
Step: 1
Compute the following 1 Currentratio Choose Numerator Choose Denominator Current Ra...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started