problem 5

Che Problem 13-4A (Algo) 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. $53.900, total assets. $199.400.common stock 588,000, and retained earnings $27,892.) CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 8,000 Accounts payable 16,500 Short-term investments 8,400 Accrued wages payable 3.800 Accounts receivable, net 32,800 Income taxes payable 3.100 Merchandise inventory 38,150 Long-term note payable, secured by 69,10 mortgage on plant assets 8,000 Prepaid expenses 2,900 Common stock 59,750 Plant assets net 150,380 Retained earnings $ 240.550 Total assets $ 240,550 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 296,850 Gross profit 157, 750 Operating expenses 99,600 Interest expense Income before taxes 53, 350 Income tax expense 21,492 Net income $ 31,858 4, 800 Help Save 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 eamed (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (11) retum 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 Reg 4 Regs Reg 6 Reg 2 Regs Rego Reg 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current Ratio Choose Denominator: Current Ratio Current ratio 101 (2) Acid.Test Ratio Choose Denominator Choose Numorator IE Acid Test Ratio Acid Test Ratio 1101 Saved Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Req 7 Req8 Reg 9 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: X Days Choose Numerator: 1 Days Sales Uncollected . Days sales uncollected days Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req4 Req 5 Reg 6 Req 7 Req 8 Reg 9 Reg 10 Compute the inventory turnover. (4) Choose Numerator: Inventory. Tumover 1 Choose Denominator Inventory Tumover Inventory turnover times Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Regs Reg 6 Reqz Req8 Req9 Reg 10 Compute the days' sales in inventory. (5) Choose Numerator: Days' Sales in Inventory Choose Denominator: x Days Days' Sales in Inventory = Days' sales in inventory days X question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Reg 10 R Compute the debt-to-equity ratio. (6) Choose Numerator: Debt to Equity Ratio Choose Denominator: 11 Debt-to-Equity Ratio Debt-to-equity ratio to 1 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req 5 Req6 Real Req 8 Req 9 Reg 10 Reg 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator Times Interest Eamed Times interest eamed times Ulty- Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Book Reg 4 Reqs Req 6 Req 7 Rebas Req 9 Reg 1 Print Compute the profit margin ratio. ferences (8) Choose Numerator: Profit Margin Ratio Choose Denominator: 1 7 Profit margin ratio = Profit margin ratio % (6) debt-to-equity ratio.) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) 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 Book Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 EL Print Compute the total asset turnover. erences (9) Choose Numerator: Total Asset Turnover 1 Choose Denominator: Total Asset Turnover Total asset turnover times (8) profit margin ratio (9) total asset turnover. (10) retu on common stockholders' equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 bok Req 3 Req 4 Req.5 Reg 6 Req 7 Req 8 Req9 Repic int Compute the return on total assets. ences (10) Choose Numerator: Return on Total Assets Choose Denominator: Return on Total Assets Return on total assets 96 5) debt-to-equity ratio. (7) times interest earned. (8) profit margin ratio. (9) total asset turnover (10) return on total assets and retum n common stockholders' equity (Do not round intermediate calculations.) Check my we Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg4 Reg 5 Reg 6 Req 7 Req8 Req9 Red 10 Real Compute the return on common stockholders' equity. (11) Return on Common Stockholders. Equity Choose Denominator Choose Numerator Return On Common Stockholdersity Ratum in common cold