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, $51900, total assets, $209,400; common stock. $87000, and retained earnings $27244) Assets Cash Short-term investments Accounts receivable, net Merchandise Inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable 9,400 Accrued wages payable 31,000 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 149,300 Retained earnings 5 240,600 Total abilities and equity $ 16,500 3,000 3,000 71,400 87,000 59,700 $ 240,600 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $455,600 Cost of goods sold 298,150 Gross profit 157,450 Operating expenses 99,300 Interest expense 3.800 Income before taxes 54,350 Income tax expense 21,894 Net Income 5 32,456 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 equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. Current Ratio Denominator Numerator Current Ratio Current ratio 101 1 12) Acid-Test Ratio Denominator: Numerator: 1 1 Acid-Test Ratio Acid-Test Ratio to 1 Reg 1 and 2 Reg 3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Reg7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Denominator Numerator Days Days Sales Uncollected Days sales uncollected days Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Reqs Reg 6 Reg 7 Req 8 Reg 9 Req 10 Reg 11 Compute the inventory tumover. (4) Numerator: Inventory Turnover Denominator Inventory Turnover Inventory turnover times Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req4 Reg 5 Reg 6 Reg 7 Req8 Req9 Reg 10 Reg 11 Compute the days' sales in inventory (5) Numerator: Days Sales in Inventory Denominator: Days Days' Sales in Inventory = Days sales in inventory days Req6 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Req 6 Reg 2 Req8 Reg 9 Req 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio Denominator: Numerator: Profit margin ratio Profit margin ratio & Req? Reqe > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req5 Req6 Req7 Req 8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover. 19) Total Asset Turnover Denominator Numerator: Total Asset Turnover Total asset turnover times Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req6 Req7 Regs Reg 9 Reg 10 Reg 11 Compute the return on total assets, (10) Numerator: Return on Total Assets Denominator Return on Total Assets Return on total assets Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 9 Req 6 Reg 10 Req7 Reg 4 Reg 5 Reg 11 Reg 8 Compute the return on equity, (11) Return on Equity Denominator Numerator: Return On Equity Return on equity
