Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls help? Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31 of the

pls help? image text in transcribed
image text in transcribed
image text in transcribed
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, $239,400, common stock, $86,000, and retained earnings. $43,018.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $452,600 Cost of goods sold 297,750 Gross profit 154,850 Operating expenses 98,500 Interest expense 4,300 Income before taxes 52,050 Income tax expense 20,968 Net income 31.082 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 22,000 Accounts payable 8.000 Accrued wages payable 30,200 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2.852 Common stock 149.300 Retained earnings $ 248,500 Total liabilities and equity 17,500 3.400 4.189 63.400 86,000 Prepaid expenses Plant assets, net Total assets 74, 100 $248.500 Required: Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inver (6) debt-to-equity ratio. (7) times interest earned. (8) profit margin ratio. (9) total asset turnover (10) return on total assets, and (IT)re on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Reg 5 Req 6 Reg 7 Req8 Req9 Req 10 Reg 11 Compute the total asset turnover. 19) Choose Numerator: Net sales $ Total Asset Tumover Choose Denominator: Average total assets Total Asset Turnover Total asset turnover O times 452,600 ECCAGO Plant assets, net Total assets 149,00 Retained earnings Total liabilities and equity 248,500 Required: Compute the following: () 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. in the tabs bere Req 1 and 2 Req3 Rega Reqs Reg 6 Req7 Req8 R eq9 Req 10 Reg 11 Compute the return on common stockholders' equity. (11) Retum on Common Stockholders' Equity Choose Denominator Average common stockholders' equity Choose Numerator: Preferred dividends 31002 - Return On Common Stockholders' Equity Return on common stockholders' equity Net income is Res 10

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_2

Step: 3

blur-text-image_3

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

Accounting Advanced

Authors: Claudia Bienias Gilbertson

9th Edition

0538447559, 9780538447553

More Books

Students also viewed these Accounting questions

Question

What were some of the team roles at Casper?

Answered: 1 week ago

Question

What were some of the team norms at Casper?

Answered: 1 week ago