Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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, $49,900 total assets, 199.400, common stock, $85,000, and retained earnings, $33.493) CABOT CORPORATION Income Statent Current Year Ended December 31 Sales 5451,600 Cost of goods sold 297950 Gross profit 153,650 Operating expenses 99 100 Interest expense Income before taxes 50,250 Income tax expense 20,243 Net Inco $10.00 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CASOT CORPORATION Balance Sheet December 31 Liabilities and Equity 15,000 Accounts payable 9,400 Accrued wages payable 32,400 Incontres payable 32,158 Long term note payable, secured by sortgage on plant assets 2,650 Common stock 140.10 Retained ning 3342.900 Total liabilities and equity 10,500 5,200 4,300 1,400 Presidents 35.000 1,500 $242,900 Total Required: 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. Reg 1 and 2 Rego Reg4 Regs Reg 6 Reg 7 Rega Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. Choose Numerator Current Ratio Choose Denominator Current Ratio Current ratio to 1 123 Choose Numerator Acident Ratio Choose Denominator Acid Test Ratio Acid Test Ratio to 1 Req3 > Saved -- (6) debt-to-equity ratio (7) times interest earned, (8) profit margin ratio (9) total asset turnover (10) return on total assets. on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 3 Reg 1 and 2 Reg 4 Regs Reg 11 Req6 Reg 2 Reg 8 Reg 10 Reg 9 Compute the days sales uncollected (3) Days' Sales Uncollected Choose Denominator: x Days Choose Numerator Days Sales Uncollected Days sales uncollected days Saved Compute the following: (1) current ratio. (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover, (5) days' sale (6) debt-to-equity ratio) times interest earned, (8) profit margin ratio (9) total asset turnover (10) return on total assets, 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 Req4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the inventory turnover. (4) Inventory Turnover Choose Denominator: Choose Numerator: Inventory Turnover Inventory turnover times 1 nowing (4) ac 5 days Sales (9) inventory (6) debt-to-equity ratio. (7) times interest eamed (8) profit margin ratio, (9) total asset turnover (10) return on total assets ddys Sdr 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 Reg4 Reg 5 Rego Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory (5) Choose Numerator Days' Sales In Inventory Choose Denominator Days X - Days' Sales In Inventory - Days' sales in inventory days Complete this question by entering your answers in the tabs below. Req3 Reg 4 Reg 1 and 2 Reg 5 Reg 6 Req7 Reg 11 Reg 8 Reg 9 Reg 10 Compute the debt-to-equity ratio (6) Debt toEquity Ratio Choose Denominator Choose Numerator Debt-to-Equity Ratio Debt-to-equity ratio to 1 R1 and 2 Req3 Reg4 Keg 5 Rego Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the times interest earned Choose Numerator Times Interes Eamed Choose Denominator Times Interest Earned Times interesteamed times Complete this question by entering your answers in the tabs below. Req7 Reg 8 Reg 9 Reg 6 Reg 10 Reg 11 Reg 3 Req5 Reg 1 and 2 Reg 4 Compute the profit margin ratio, (8) Profit Margin Radio Choose Denominator: Choose Numerator Profit margin ratio Profit margin ratio & Reg? Req9 > Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Req5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the total asset tumover. (9) Total Asset Turnover Choose Denominator Choose Numerator Total Asset Turnover Total asset turnover times 0 2 Complete this question by entering your answers in the tabs below. ont Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on total assets. 110) Choose Numerator Return on Total Assets Choose Denominator Return on Total Assets Return on total assets % Complete this question by entering your answers in the tabs below. Rog 9 Reg 11 Reg 10 Red Reg 1 and 2 Rea Reg Reas Reg4 Rego Compute the return on common stod holders' equity Return on Connon Stockholders' Equity Choose Denominator Choose Numeraton - Return On Common Stockholders' Equity Return on common stockholders' equity

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

Step: 3

blur-text-image

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

The ASQ Auditing Handbook

Authors: J. P. Russell,

4th Edition

0873898478, 978-0873898478

More Books

Students also viewed these Accounting questions

Question

Why Is Software Architecture Important?

Answered: 1 week ago

Question

What are the important facts related to this situation?

Answered: 1 week ago