Question
Hello, I need help with this. Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at
Hello, I need help with this.
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, $47,900; total assets, $189,400; common stock, $85,000; and retained earnings, $31,283.)
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 equity. (Do not round intermediate calculations.)
CABOT CORPORATION Income Statement For Current Year Ended December 31 \begin{tabular}{lr} Sales & $448,600 \\ Cost of goods sold & 298,350 \\ Gross profit & 150,250 \\ Operating expenses & 99,300 \\ Interest expense & 4,200 \\ \hline Income before taxes & 46,750 \\ Income tax expense & 18,833 \\ \hline Net income & $27,917 \end{tabular}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