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, $48,900, total assets, $199.400; common stock, 588,000, and retained earnings, $30,470) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450, 600 Cost of goods sold 298,150 Gross profit 152,450 Operating expenses 98,000 Interest expense 4,200 Income before taxes 9,450 Income tax expense 19,920 Net Income $ 29,530 Assets Cash Short-ters Investments Accounts receivable. net Merchandise Inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10.000 Accounts payable 9.00 Accrued wages payable 31,200 Income taxes payable 40,150 tong-term note payable, secured by mortgage on plant assets 2,350 Common stock 158300 Retained earnings $ 243,500 Total liabilities and equity $ 16,500 4.800 3,500 70,400 Prepaid expenses Plant assets, net Total assets 38,000 60,000 $ 243,500 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 Req3 Reg 4 Reg 5 Rego Reg 7 Rego Reg 9 Reg 10 Reg 11 Compute the days sales uncollected 0) Days Sales Lincollected Choo Numerator Choose Denominator: Days Accounts Recolvable net Net sales 365 Days Sales Uncollected Days Sales uncollected x o days 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, $48,900, total assets, S199,400. common stock, 588,000, and retained earnings. $30,470) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450, 600 Cost of goods sold 298,150 Gross profit 152,450 Operating expenses 98,800 Interest expense 4,200 Income before taxes 49,450 Income tax expense 19,920 Net income $ 29,530 516, see Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT COUPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 9,000 Accrued wages payable 31,200 Income taxes payable 40,150 Long-ter note payable, secured by mortgage on plant assets 2,850 Connon stock 150,300 Retained earnings $ 243,500 Total 1labilities and equity 70,400 Prepaid expenses Plant assets, net Total assets 38.000 60.000 $ 243,50 Required: Compute the following: (1) current ratio, (2) acid-test ratio. (3) days' sales uncollected. (4) inventory tumover. (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. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req7 Reqs Reg 9 Reg 10 Reg 11 Compute the inventory turnover Inventory Turnover Choose Denominator Choose Numerator Inventory Turnover Inventory turnover O times 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, $48,900 total assets, $199.400, common stock, 588.000; and retained earnings, $30,470.) CABOT CORPORATION Incone Statenent For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 298,150 Gross profit 152,450 Operating expenses 98,800 Interest expense 4,200 Income before taxes 49,450 Income tax expense 19,920 Net Income $ 29,530 Assets Cash Short-tern Investments Accounts receivable, net Merchandise Inventory CANOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10, Accounts payable 9,600 Accrued wages payable 31,200 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 150/100 Retained earnings $ 245,500 Total liabilities and equity $ 16,500 4,00 3,000 70,400 Prepaid expenses plant assets, net Total assets 68,000 60,000 5243,500 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 (1) return on common stockholders' equity (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg4 Reg 5 Reg 2 Reg 8 Regg 6 Rego Reg 10 Reg 1: Compute the debt-to-equity ratio, (0) Debt to Equity Ratio Choose Denominator Choose Numerator Debt-to-Equity Ratio Debt-to-equity ratio oto 1 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, $48,900 total assets, $199,400, common stock, 588,000, and retained earnings. $30,470) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 298 150 Gross profit 152,450 Operating expenses 98,500 Interest expense 4,200 Incone before taxes 49,454 Incone tax expense 19.920 Net Income $ 29,530 $ Assets Cash Short-term Investments Accounts receivable.net Merchandise Inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Libilities and Equity $ 10.000 Accounts payable 9,000 Accrued wages payable 31,200 Tocone taxes payable 10,150 Longtern note payable, secured by nortgage on plant assets 2.050 Connon stock 150,100 Retained earnings 1 241,00 Total abilities and equity 16,500 4,100 3.000 70,00 68,000 60.000 $ 243,500 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 18) 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. Reg1 and 2 Reg 3 Reg4 Reas Rego haq Rego Req Reg 10 Reg 11 Compute the times interest earned Times interest Lace Choose Nuno 1 Choose nominator 1 The Interest and Times interested os - 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, 548,900 total assets, $199,400, common stock, $88,000; and retained earnings, $30,470.) CAROT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,000 Cost of goods sold 298,150 Gross profit 152,450 Operating expenses 90,000 Interest expense 4,200 Incone before taxes 49,450 Income tax expense 19.920 Net Income $29.530 ses $ 16,500 Assets Cash Short-term investments Accounts receivable, net Merchandise Inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 9,000 Accrued wages payable 31,200 Income taxes payable 40,150 Long term note payable, secured by morte on plant assets 2,350 Common stock 150,00 Retained warnings $ 243,500 Total liabilities and equity 3,500 70,400 Prepaid expenses Plant assets, net Total assets 30,000 60.000 5 243,500 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 (Tt) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Regs Reg4 Hea Reg 6 tea Reg3 Rego ng 10 Reg 11 Compute the profit margin ratio Profit Margin Ratio Choose Denominator: Choone Numerator Profit margin to Protit margin ratio = ( Reg Hey > 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, $48,900 total assets. $199.400.common stock, $88,000, and retained earnings. $30,470) CAROT CORPORATION Income Statement For Current Year Ended December 31 Sales $450,600 Cost of goods sold 298,150 Gross profit 152,450 Operating expenses 98,500 Interest expense Income before taxes 49,450 Income tax expense Net Income 529,530 $ 16,500 CABOT CORPORATION Balance Sheet December 31 Lisbilities and Equity $10,000 Accounts payable 9,000 Accrued ages payable 31,200 Income taxes payable 40,150 Long-teremte payable, secured by mortage on plant assets 2,50 Con stock 150 300 Betained earnings $243.500 Total liabilities and equity Assets Cash Short tere Investments Accounts receivable, het Merchandise inventory Prepaid expenses Plant assets, bet Total assets 3.800 $ 243,500 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) times interest earned. (8) profit margin ratio. 19 total asset turnover (10) return on total assets, and (tt) return on common stockholders' equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Rega Rea 4 Reg 5 Red Reg 2 Rees Res 10 Compute the total asset turnover Red 19) Total Asset Choose Denominata Choose Numeraton Total Asset res 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, 548.900, total assets, $199,400, common stock $88.000; and retained earnings $30.470) 2 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $450,60 Cost of goods sold 293.150 Gross profit 152.450 Operating expenses 98,00 Interest expense 6.200 Income before taxes 49,450 Income tax expense 19.920 Net Income $ 29.530 ences 16,500 Assets Cash Short-term investments Accounts receivable.net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $10.000 Accounts payable 9,000 Accrued wapes payable 31,200 Income taxes payable 40,150 Long-term rote payable, secured by mortgage on plant assets 2.850 Canon stock 150,00 Betained earnings 5 243,500 total liabilities and equity 3.000 80.00 60.000 $240, 500 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. 17 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. Ren 1 and 2 Reg Reg 4 Reas Red 7 Reco Reg Red 10 Compute the return on total assets. (10) Choose Numeraton 1 Choose Denominator - Return on tal 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, $48,900 total assets. 5199 400, common stock, $88,000, and retained earnings. $30,470) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,6 Cost of goods sold 298 150 Gross profit 152,450 Operating expenses 98,00 Interest expense 4,200 Incone before taxes 49,450 Income tax expense 19920 Net Income $29.530 Assets Cash Short-term investments Accounts receivable.net Merchandise Inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,00 Accounts payable 9,600 Accrued wages payable 31.200 Income taxes payable 40,150 Long term note payable, Secured by mortise en plant assets 2,90 Connon stock 150.100 Retained earnings $ 243,500 Total liabilities and equity $ 16,500 4,000 3,000 70,400 Prepaid expenses plant assets, net Total assets 68,000 60.000 $ 249,500 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 R 1 and 2 Rega Reg Reg 5 Rego Reg Reg Ree Red 10 Red 11 Compute the return on common stockholders' equity 191) Return on Common Stockholders Choose Denominator Choose Numerator Return On Common Stockholders' Equity Rutumn common shadesoul O