1. On February 15, paid $170,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 8% interest (classified as held-to-maturity).
2. On March 22, bought 700 shares of Fran Inc. common stock at $34 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran.
3. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a.
4. On July 30, paid $51,000 cash to purchase MP Inc.'s 7% , six-month notes at par, dated July 30 (classified as trading securities).
5. On September 1, received a $0.66 per share cash dividend on the Fran Inc. common stock purchased in part b.
6. On October 8, sold 350 shares of Fran Inc. common stock for $40 cash per share.
7. On October 30, received a check from MP Inc. for three months interest on the notes purchased in part d.

Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. (Use 360 days in a year. Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)

• Accounts receivable
• Brokerage fee expense
• Cash
• Debt investments - AFS
• Debt investments - HTM
• Debt Investments - Trading
• Dividend revenue
• Earnings from equity method investments
• Equity method investments
• Fair value adjustment - AFS
• Fair value adjustment - Stock
• Fair value adjustment - Trading
• Gain on sale of debt investments
• Gain on sale of stock investments
• Interest receivable
• Interest revenue
• Loss on sale of debt investments
• Loss on sale of stock investments
• Stock investments
• Unrealized gain - Equity
• Unrealized gain - Income
• Unrealized loss - Equity
• Unrealized loss - Income

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, $249,400; common stock, $86,000; and retained earnings, $42,976.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales	$	449,600
Cost of goods sold		297,550
Gross profit		152,050
Operating expenses		99,400
Interest expense		4,800
Income before taxes		47,850
Income tax expense		19,276
Net income	$	28,574

CABOT CORPORATION Balance Sheet December 31
Assets				Liabilities and Equity
Cash	$	20,000		Accounts payable	$	15,500
Short-term investments		9,600		Accrued wages payable		5,000
Accounts receivable, net		33,000		Income taxes payable		4,700
Merchandise inventory		36,150		Long-term note payable, secured by mortgage on plant assets		67,400
Prepaid expenses		3,100		Common stock		86,000
Plant assets, net		148,300		Retained earnings		71,550
Total assets	$	250,150		Total liabilities and equity	$	250,150

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.)

Franklin Co. reported the following year-end data:

Net income	$	229,000
Annual cash dividends of per share	$	3
Market price per (common) share	$	150
Earnings per share	$	15

Compute the (a) price-earnings ratio and (b) dividend yield.

• Price Earnings Ratio
• Dividend Yield