Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER ALL IN ORDER TO BE CORRECT. Please fill in answers in appropriate BLANKS. Thanks in advance! Selected year-end financial statements of Cabot Corporation

PLEASE ANSWER ALL IN ORDER TO BE CORRECT. Please fill in answers in appropriate BLANKS. Thanks in advance!

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $56,900; total assets, $189,400; common stock, $83,000; and retained earnings, $42,704.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2015

Sales

$

455,600

Cost of goods sold

297,850

Gross profit

151,750

Operating expenses

98,800

Interest expense

4,700

Income before taxes

54,250

Income taxes

21,864

Net income

$

32,396

CABOT CORPORATION Balance Sheet December 31, 2015

Assets

Liabilities and Equity

Cash

$

12,000

Accounts payable

$

19,500

Short-term investments

9,400

Accrued wages payable

3,000

Accounts receivable, net

31,200

Income taxes payable

3,500

Notes receivable (trade)*

5,000

Long-term note payable, secured

Merchandise inventory

40,150

by mortgage on plant assets

67,400

Prepaid expenses

2,450

Common stock

83,000

Plant assets, net

151,300

Retained earnings

75,100

Total assets

$

251,500

Total liabilities and equity

$

251,500

These are short-term notes receivable arising from customer (trade) sales.

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.)

(1)Current Ratio

Choose Numerator: / Choose Denominator: = Current Ratio

___________/_________= Current Ratio

2015: __________/_________=___________ to 1

Acid Test Ratio

Choose Numerator: / Choose Denominator: = Acid Test Ratio

___________/_________= Acid Test Ratio

2015: __________/_________=___________ to 1

(3)Days Sales Uncollected

Choose Number: / Choose Denominator: x Days = Days Sales Uncollected

____________ / ____________ x ______= Days Sales Uncollected

2015:_______ / _____________x______=_________ days

(4)Inventory Turnover

Choose Numerator: / Choose Denominator: = Inventory Turnover

___________/_________= Inventory Turnover

2015: __________/_________=___________ times

(5)Days Sales in Inventory

Choose Number: / Choose Denominator: x Days = Days Sales in Inventory

____________ / ____________ x ______= Days Sales in Inventory

2015:_______ / _____________x______=_________ days

(6)Debt to Equity Ratio

Choose Numerator: / Choose Denominator: = Debt to Equity Ratio

___________/_________= Debt to Equity Ratio

2015: __________/_________=___________ to 1

(7)Time Interest Earned

Choose Number: / Choose Denominator = Time Interest Earned

______________ + _____________ / ___________ = Time Interest Earned

2015:__________+_____________ / ___________=__________ times

(8)Profit Margin Ratio

Choose Numerator: / Choose Denominator: = Profit Margin Ratio

___________/_________= Profit Margin Ratio

2015: __________/_________=___________ %

(9)Total Asset Turnover

Choose Numerator: / Choose Denominator: = Total Asset Turnover

___________/_________= Total Asset Turnover

2015: __________/_________=___________ times

(10)Return on Total Assets

Choose Numerator: / Choose Denominator: = Return on Total Assets

___________/_________= Return on Total Assets

2015: __________/_________=___________ %

(11)Return on Common Stockholders Equity

Choose Number: / Choose Denominator = Return on Common Stockholders Equity

______________ -_____________ / ___________ = Return on Common Stockholders Equity

2015:__________-_____________ / ___________=__________ %

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