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, $51,900; total assets, $239,400; common stock, $83,000; and retained earnings, $42.773.) 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 $ 16,000 Accounts payable 9,200 Accrued wages payable 31,000 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,950 Common stock 152,300 Retained earnings $ 247,600 Total liabilities and equity $ 18,500 4,800 4,000 64,400 83,000 72,900 $ 247,600 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 451,600 Cost of goods sold 297,750 Gross profit 153,850 Operating expenses 98,800 Interest expense 4,600 Income before taxes 50,450 Income tax expense 20,323 Net income $ 30,127 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. Req 1 and 2 Req 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Denominator: Numerator: 1 = Profit margin ratio Profit margin ratio 1 1 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, $51,900; total assets, $239,400; common stock, $83,000; and retained earnings, $42.773.) 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 $ 16,000 Accounts payable 9,200 Accrued wages payable 31,000 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,950 Common stock 152,300 Retained earnings $ 247,600 Total liabilities and equity $ 18,500 4,800 4,000 64,400 83,000 72,900 $ 247,600 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 451,600 Cost of goods sold 297,750 Gross profit 153,850 Operating expenses 98,800 Interest expense 4,600 Income before taxes 50,450 Income tax expense 20,323 Net income $ 30,127 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. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover Denominator: Numerator: 1 = Total Asset Turnover 1 = Total asset turnover 1 o times
