Question
elected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $48,900; total
elected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $48,900; total assets, $249,400; common stock, $85,000; and retained earnings, $45,611.) |
CABOT CORPORATION Income Statement For Year Ended December 31, 2015 | ||
Sales | $ | 450,600 |
Cost of goods sold | 298,350 | |
Gross profit | 152,250 | |
Operating expenses | 98,600 | |
Interest expense | 4,100 | |
Income before taxes | 49,550 | |
Income taxes | 19,961 | |
Net income | $ | 29,589 |
CABOT CORPORATION Balance Sheet December 31, 2015 | ||||||
Assets | Liabilities and Equity | |||||
Cash | $ | 20,000 | Accounts payable | $ | 18,500 | |
Short-term investments | 8,000 | Accrued wages payable | 4,600 | |||
Accounts receivable, net | 32,000 | Income taxes payable | 3,300 | |||
Notes receivable (trade)* | 7,500 | Long-term note payable, secured | ||||
Merchandise inventory | 32,150 | by mortgage on plant assets | 66,400 | |||
Prepaid expenses | 3,050 | Common stock | 85,000 | |||
Plant assets, net | 150,300 | Retained earnings | 75,200 | |||
Total assets | $ | 253,000 | Total liabilities and equity | $ | 253,000 | |
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 following:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
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