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Example of how of layout thank you. Problem 13-4A Calculating financial statement ratios @p3 Selected current year-end financial statements of Cabot Corporation follow. All sales

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Problem 13-4A Calculating financial statement ratios @p3 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, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748. CABOT CORPORATION Balance Sheet December 31 of Current Year Assets Cash 10,000 Short-term investments 8,400 33,700 32,150 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 2,650 153,300 Total assets $240,200 $ 17,500 3,200 Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity 3,300 63,400 90,000 62,800 $240,200 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $448,600 297,250 151,350 Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes 98,600 4,100 48,650 Income tax expense 19,598 Net income $ 29,052 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. Round to one decimal place; for part 6, round to two decimals. Current Ratio Choose Denominator: Choose Numerator: 1 Current Ratio / Current Ratio 1 to 1 Acid-Test Ratio Choose Numerator: 1 Choose Denominator: Acid-Test Ratio 1 = Acid-Test Ratio to 1 1 Days Sales Uncollected Choose Denominator: Choose Numerator: 1 Days 1 = Days Sales Uncollected Days Sales Uncollected days 1 X Inventory Turnover Choose Denominator: Choose Numerator: 1 / = Inventory Turnover Inventory Turnover times 1 Days' Sales in Inventory Choose Denominator: Choose Numerator: Days 1 = Days' Sales in Inventory Days' Sales in Inventory days x Debt-to-Equity Ratio Choose Denominator: Choose Numerator: 1 Debt-to-Equity Ratio Debt-to-Equity Ratio 1 = / = to 1 Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned / = Times Interest Earned 1 = times Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned + 1 Times Interest Earned + 1 = times Profit Margin Ratio 1 Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio / 1 Total Asset Turnover Choose Numerator: 1 Choose Denominator: Total Asset Turnover / Total Asset Turnover 1 = times Return on Total Assets Choose Numerator: 1 Choose Denominator: Return on Total Assets Return on Total Assets / 1 = Return on Common Stockholders' Equity Choose Denominator Choose Numerator: Return On Common Stockholders' Equity = Return On Common Stockholders' Equity 1 1

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