Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

mwork mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question

image text in transcribed
image text in transcribed
mwork mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Selected current year-end financial statemedits of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $229,400; common stock, $86,000; and retained earnings, $42,715.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,950 Gross profit 150, 650 Operating expenses 99,100 Interest expense 4,100 Income before taxes 47, 450 Income tax expense 19,115 Net income $ 28,335 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 20,000 Accounts payable 8,000 Acerued wages payable 28,800 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 154,300 Retained earnings $ 17,500 3,000 3,400 65,400 Prepaid expenses Plant assets, net 86,000 71.050 Saved Help Save & Exit Submit ek mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Come DeLLe taxes Income tax expense Net income 41,420 19,115 $ 28,335 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 20,000 Accounts payable 8,000 Accrued wages payable 28,800 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 154,300 Retained earnings $ 246,350 Total liabilities and equity $ 17,500 3,000 3,400 65,400 Prepaid expenses Plant assets, net Total assets 86,000 71,050 $ 246, 350 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. (Do not round intermediate calculations.) Answer is not complete. Complete this question by entering your answers in the tabs below.

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

More Books

Students also viewed these Accounting questions

Question

3. List ways to manage relationship dynamics

Answered: 1 week ago