Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me answer soon as possible * These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (1) current ratio,

please help me answer soon as possible image text in transcribed
image text in transcribed
image text in transcribed
* 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.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req5 Reg 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the days' sales in inventory. (5) Days' Sales In Inventory Choose Numerator: 1 Choose Denominator: Days Merchandise inventory Cost of goods sold * 365 2017: $ 297,3501 $ 297,350 x 365 Days' Sales In Inventory Days' sales in inventory 365.0 days Print 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.) References Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Req8 Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: 1 Choose Denominator: Cost of goods sold Average inventory 2017: $ 297,350 $ 43,525 = Inventory Turnover Inventory turnover 6.8 times Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $54,900; total assets, $179,400; common stock, $80,000; and retained earnings, $48,523.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 450,600 Cost of goods sold 297,550 Gross profit 153,050 Operating expenses 98,600 Interest expense 4,000 Income before taxes 50,450 Income taxes 20,323 Net income $ 30,127 CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 14,000 Accounts payable 8,200 Accrued wages payable 28,800 Income taxes payable 6,000 40,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 150,300 Retained earnings $ 250,450 Total liabilities and equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 16,500 4,200 3,700 67,400 80,000 78,650 $ 250,450

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

Financial Accounting A Decision Making Approach

Authors: Thomas E. King, Valdean C. Lembke, John H. Smith

2nd Edition

0471328235, 978-0471328230

More Books

Students also viewed these Accounting questions

Question

Discuss the value of adult learning theory to HRD interventions

Answered: 1 week ago

Question

Conduct a task analysis for a job of your choosing

Answered: 1 week ago