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
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, $54,900; total assets, $209,400; common stock, $89,000; and retained earnings, $35,736.) 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 $ 16,000 Accounts payable 9,200 Accrued wages payable 34,200 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,450 Common stock. 147,300 Retained earnings Total assets $ 249,300 Total liabilities and equity CABOT CORPORATION Income Statement $ 17,500 2,800 4,200 69,400 89,000 66,400 $ 249,300 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: $ 452,600 298,350 154,250 99,000 3,900 51,350 20,686 $ 30,664 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.)
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