Question
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:__________-_____________ / ___________=__________ %
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