Question
Problem 13-4A Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet
Problem 13-4A Calculating financial statement ratios LO P3 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, $50,900; total assets, $169,400; common stock, $84,000; and retained earnings, $31,305.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 297,350 Gross profit 158,250 Operating expenses 98,800 Interest expense 4,700 Income before taxes 54,750 Income tax expense 22,055 Net income $ 32,695 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 18,000 Accounts payable $ 16,500 Short-term investments 8,800 Accrued wages payable 4,400 Accounts receivable, net 32,000 Income taxes payable 4,800 Merchandise inventory 30,150 Long-term note payable, secured by mortgage on plant assets 72,400 Prepaid expenses 2,850 Common stock 84,000 Plant assets, net 154,300 Retained earnings 64,000 Total assets $ 246,100 Total liabilities and equity $ 246,100 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.)
please helppp meeee! thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started