Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help and a expaination please Selected year-end financial statements of Cabot Corporation follow. All sales were on credit: selected balance sheet amounts at

i need help and a expaination please image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Selected year-end financial statements of Cabot Corporation follow. All sales were on credit: selected balance sheet amounts at December 31, 2016, were inventory, $52.900; total assets. $229.400; common stock, $88,000; and retained earnings, $32,712.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 450,600 Cost of goods sold 297,650 Gross profit 152,950 Operating expenses 99, 100 Interest expense 3,800 Income before taxes 50.050 Income taxes 20, 162 Net income 29,888 16,500 3,200 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash 8,000 Accounts payable Short-term 8,400 Accrued wages payable investments Accounts 31,400 Income taxes payable receivable, net Notes receivable (trade) 3.500 Merchandise 34,150 Long-term note payable, secured by inventory mortgage on plant assets Prepaid expenses 2,650 Common stock Plant assets, net 150,300 Retained earnings Total assets $ 238,400 Total liabilities and equity 3,700 64,400 88,000 62.600 238,400 * These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (l) 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.) Req 1 and 2 Req 3 Req 4 Req 5 Req Reg 9 Req 10 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denominator: 320D Choose Numerator: Current 10 - = I Current ratio Current 2017: (2) Acid-Test Ratio Choose Denominator: Choose Numerator: - = = Acid-Test Ratio Acid-Test Ratio 0 to 1 2017: roan and 2 Req3 > Compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: ~ Days Choose Numerator: = Days Sales Uncollected Days sales uncollected 2017: 0 days Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Req 7 Req8 Compute the inventory turnover. (4) Inventory Turnover Choose Denominator: Choose Numerator: = Inventory Turnover Inventory turnover 0 times 2017: = Compute the days' sales in inventory. (5) Days' Sales in Inventory I Choose Denominator: X Days Choose Numerator: Days' Sales in Inventory Days' sales in inventory o days 2017: x = Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: = = Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 2017 Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Req9 Reg 10 Reg 1 Compute the times interest earned. (7) Times Interest Earned Choose Denominator: Choose Numerator: - Times Interest Earned Times interest eamed 2017: 0 times

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

Advanced Accounting

Authors: Susan Hamlen

5th Edition

1618534246, 9781618534248

More Books

Students also viewed these Accounting questions

Question

=+5. What do you want them to think?

Answered: 1 week ago

Question

=+What the product does for the end-user.)

Answered: 1 week ago