Answered step by step
Verified Expert Solution
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 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, $50,900, total assets, $179,400; common stock, $86,000; and retained earnings, $34,043.) 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 $ 20,000 Accounts payable 9,400 Accrued wages payable 30,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 151,300 Retained earnings Total assets $ 246,000 Total liabilities and equity CABOT CORPORATION Incone Statement $ 16,500 3,400 4,500 69,400 86,000 66,200 $ 246,000 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Incone before taxes Income tax expense Net incone Required: $ 454,600 297,250 157,350 99,200 4,300 53,850 21,693 $ 32,157 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) Current Ratio Numerator: 7 Denominator: Current Ratio 1 = Current ratio 1 0 to 1 (2) Numerator: 1 1 Acid-Test Ratio Denominator: Acid-Test Ratio Acid-Test Ratio 0 to 1 Req 1 and 2 Req 3 >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started