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 $49.900: total assets, $179,400, common stock, $89,000, and retained earnings, $39.323) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 451,600 Cost of goods sold 298,050 Grass profit 153,550 Operating expensen 99,200 Tatereot expense 3,900 Tsoome before taxes 50.450 Income tax expense 20.323 Net Income $ 30,122 Assets Canh Short-term investments Accounts receivable.net Merchandise Inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $18,000 counts payable 9,000 Accrued wages payable 33,600 Income tax payable 40,150 Long-tern note payable, secured by mortgage on plant assets 2,100 Common stock 150.300 Retained earnings $ 253, 250 Total abilities and equity $17.500 4.800 4.600 68,400 Prepaid expensen Plant annet, bet Total 89,000 69,450 $ 253,750 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 eamed. (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.) 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.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req5 Reg 6 Reg 7 Req 8 Reg 9 Reg 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denoithator: Choose Numerator: Current Ratio Current ratio 1 101 (2) Acid-Test Ratio 1 Choose Denominator: Choose Numerator Acid-Test Ratio - Acid-Test Ratio 1 to 1 Roq 1 and Reg 3 > 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. $49,900; total assets, $179,400; common stock, $89,000, and retained earnings, $39,323.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 451,600 Cost of goods sold 298,050 Gross profit 153,550 Operating expenses 99, 200 Interest expense 3,900 Income before taxes 50, 450 Income tax expense 20.323 Net income $ 30,127 Assets Cash Short-term investments Accounts receivable, not Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Llabilities and Equity 18,000 Accounts payable 9,000 Acerved wages payable 33,600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,700 Common stock 150,300 Retained earnings 5 253, 750 Total liabilities and equity 17.500 4,800 4.600 68,400 Prepaid expenses Plant assets, net Total assets 89,000 69,450 $ 253,750 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.) Next 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 (16) return on total assets, ond (11) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reqs Reg 6 Reg 7 Req 8 Reg 9 Reqdo Reg 11 Reg 10 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denominator: Choose Numerator: 1 1 Current Ratio Current ratio 0 to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: = 1 / Acid-Test Ratio Acid-Test Ratio 0 to 1 R1 and Reg 3 >
