Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please read 140 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31

help please read
image text in transcribed
140 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 $53,900; total assets, $259,400; common stock, $85,000; and retained earnings, $26,086) CANOT CORPORATION Balance Sheet December of current year Assets Liabilities and Equity Cash 5 10,000 Accounts payable $ 19,500 Short-term investments , 600 Accrued wages payable 5,000 Accounts receivable, het 30,000 Income taxes payable 4.500 Merchandise inventory 36,150 Long term note payable, secured by mortgage on plant assets 69, 400 Prepaid expenses 2,900 Common stock 35,000 Plant assets, net 152,300 Retained earnings 56, 750 Total assets $ 240,150 Total liabilities and equity $ 240,150 CANT CORPORATION Income Statement For Current Year Ended December 11 Sales $452,600 Cost of goods sold 296,850 Gross profit 154, 750 Operating expenses 90,300 Interest expense 4,100 Income before taxes 51.350 Income tax expense 20,686 Net incon 5 30,664 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (a) days sales uncollected. (4) inventory turnover (5) days' sales in inventory (6) debt-to-equity ratio) 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Market Contact Audit

Authors: Gerardus Blokdyk

2nd Edition

0655179771, 978-0655179771

More Books

Students also viewed these Accounting questions