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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
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, $52,900; total assets, $169,400; common stock, $90,000; and retained earnings, $28,425) Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days) sales uncollected. (4) inventory turnover: (5) days' sales in inventory, (S) 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.) 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, $52,900; total assets, $169,400; common stock, $90,000; and retained earnings. $28,425.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash $ 16,000 8,600 Accounts payable $ 15,500 Accrued wages payable 3,809 34,200 Income taxes payable 3,200 Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 36,150 Long-term note payable, secured by mortgage on plant assets 72,400 2,650 Common stock 90,000 61,000 148,300 Retained earnings $ 245,900 Total liabilities and equity $ 245,900 CABOT CORPORATION Income Statement. For Current Year Ended December 31 Sale! $ 455,600 297,650 Cost of goods sold. Gross profit 157,958 Operating expenses 98,700 4,700 Interest expense Income before taxes 54,550 21,975 Income tax expense Net Income $ 32,575 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.)
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, $52,900; total assets, $169,400; common stock, $90,000; and retained earnings,
$28,425)
Required:
Compute the following: (1) current ratio, (2) acid-test ratio, (3) days) sales uncollected. (4) inventory turnover: (5) days' sales in inventory,
(S) 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.)
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