Question
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, $53,900; total assets, $169,400; common stock, $83,000; and retained earnings, $42,754.)
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 common stockholders' 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, $53,900; total assets, $169,400; common stock, $83,000; and retained earnings, $42,754.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450, 600 Cost of goods sold 296,850 Gross profit 153,750 Operating expenses 98,800 Interest expense 4,300 Income before taxes 50,650 Income tax expense 20,404 Net income $ 30, 246 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 20,000 Accounts payable 9,600 Accrued wages payable 32,800 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 150,300 Retained earnings $ 253,600 Total liabilities and equity 17,500 5,000 4,700 70,400 Prepaid expenses Plant assets, net Total assets 83,000 73,000 $ 253,600 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 common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: 1 Choose Denominator: = Current Ratio 1 = Current ratio / = to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: / = Acid-Test Ratio Acid-Test Ratio to 1 1 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 common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected 1 Choose Denominator: Days Choose Numerator: Days Sales Uncollected Days sales uncollected 1 1 days 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 common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the inventory turnover. (4) Choose Numerator: Inventory Turnover 1 Choose Denominator: 1 Inventory Turnover Inventory turnover times / Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory Choose Denominator: Choose Numerator: 1 Days Days' Sales in Inventory Days' sales in inventory X / X days Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Equity Ratio 1 Choose Denominator: 1 = Debt-to-Equity Ratio Debt-to-equity ratio II / to 1 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Reg 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: = Times Interest Earned Times interest earned = times Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req5 Reg 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio 1 Choose Denominator: Choose Numerator: II Profit margin ratio Profit margin ratio 1 = % 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 common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Req 7 Req 8 Req9 Req 10 Reg 11 Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover 1 Choose Denominator: 1 = Total Asset Turnover Total asset turnover times 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 common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets 1 Choose Denominator: 1 Return on Total Assets Return on total assets = 1 = = % 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 common stockholders' 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 Req 5 Reg 6 Req 7 Req 8 Reg 9 Req 10 Reg 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Denominator Choose Numerator: Return On Common Stockholders' Equity = Return on common stockholders' equity %Step by Step Solution
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