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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 3,050 Long-term note payable, secured by mortgage on plant assets Common stock 150,300 Retained earnings $ 246,500 Total liabilities and equity $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Numerator: (2) Numerator: 1 Current Ratio Denominator: = Current Ratio = Current ratio = to 1 Acid-Test Ratio Denominator: Acid-Test Ratio Acid-Test Ratio < Req 1 and 2 Req 3 > to 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) 5 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 3,050 Long-term note payable, secured by mortgage on plant assets Common stock 150,300 Retained earnings $ 246,500 Total liabilities and equity $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales uncollected. (3) Numerator: Days' Sales Uncollected Denominator: x Days < Req 1 and 2 Req 4 > Days Sales Uncollected = Days sales uncollected = days 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 12,000 Accounts payable 9,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accrued wages payable 30,000 Income taxes payable 42,150 Long-term note payable, secured by mortgage on plant assets 3,050 150,300 Common stock Retained earnings Total assets $ 246,500 Total liabilities and equity CABOT CORPORATION Income Statement $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the inventory turnover. (4) Numerator: Inventory Turnover Denominator: = Inventory Turnover = Inventory turnover = times < Req 3 Req 5 > 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 12,000 Accounts payable 9,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accrued wages payable 30,000 Income taxes payable 42,150 3,050 150,300 Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total assets $ 246,500 Total liabilities and equity CABOT CORPORATION Income Statement $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Numerator: Days' Sales in Inventory. Denominator: Days Days' Sales in Inventory = Days' sales in inventory = days < Req 4 Req 6 > 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 3,050 Long-term note payable, secured by mortgage on plant assets Common stock 150,300 Retained earnings $ 246,500 Total liabilities and equity $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Numerator: 1 Denominator: Debt-to-Equity Ratio Debt-to-equity ratio < Req 5 Req 7 > to 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 3,050 150,300 Long-term note payable, secured by mortgage on plant assets. Common stock. Retained earnings $ 246,500 Total liabilities and equity $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Numerator: Denominator: + / < Req 6 Req 8 > Times Interest Earned = Times interest earned times 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 12,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 3,050 Long-term note payable, secured by mortgage on plant assets Common stock 150,300 Retained earnings Total assets $ 246,500 Total liabilities and equity CABOT CORPORATION Income Statement $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Numerator: Profit Margin Ratio Denominator: = Profit margin ratio = Profit margin ratio = % < Req 7 Req 9 > 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 12,000 Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 Long-term note payable, secured by mortgage on plant assets 3,050 150,300 Common stock Retained earnings $ 246,500 Total liabilities and equity $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. (9) Numerator: 1 Total Asset Turnover Denominator: = Total Asset Turnover = Total asset turnover = times < Req 8 Req 10 > 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 12,000 Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 3,050 150,300 Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total assets $ 246,500 Total liabilities and equity CABOT CORPORATION Income Statement $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes. Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on total assets. (10) Numerator: Return on Total Assets Denominator: Return on Total Assets Return on total assets % < Req 9 Req 11 > 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, $50,900; total assets, $189,400; common stock, $89,000; and retained earnings, $29,922.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable 9,000 Accrued wages payable 30,000 Income taxes payable 42,150 Long-term note payable, secured by mortgage on plant assets 3,050 150,300 Common stock Retained earnings $ 246,500 Total liabilities and equity $ 16,500 3,800 3,900 71,400 89,000 61,900 $ 246,500 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,150 157,450 99,200 4,700 53,550 21,572 $ 31,978 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 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on equity. (11) Numerator: 1 Return on Equity Denominator = Return On Equity Return on equity = % < Req 10 Req 11 >