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 $49,900; total assets, $189,400; common stock, $82,000; and retained earnings, $39,950.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 297,550 Gross profit 157,050 Operating expenses 99,400 Interest expense 4,900 Income before taxes 52,750 Income tax expense 21,250 Net income $ 31,500 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 9,200 Accrued wages payable 30, 200 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 150, 300 Retained earnings $ 248.750 Total 11abilities and equity $ 17,500 5,000 4,400 68,400 Prepaid expenses Plant assets, net Total assets 82,000 71.450 $ 248,750 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. Reg 3 Reg 1 and 2 Reg 4 Regs Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. The formula for the current ratio is: Current Assets + Curent Liabilities The formula for the acid-test ratio is: (Cash + Short-Term Investments + Current Receivables) + Current Liabilities or: Quick Assets + Current Liabilties Show less (1) Current Ratio Choose Denominator: 1 Choose Numerator Current Ratio Current ratio tot Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Reg 4 Compute the current ratio and acid-test ratio. The formula for the current ratio is: Current Assets + Curent Liabilities The formula for the acid-test ratio is: (Cash + Short-Term Investments + Current Receivables) + Current Liabilities or: Quick Assets + Current Liablities Show less Curreot Ratio Choone Denominator Choose Numerator 1 1 1 = Current Ratio Current ratio to 1 (2) Acid Tent Ratio Choose Denominator Choose Numerator Acid-Test Ratio = Acid-Test Ratio to 1
Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg4 Reg 5 Req6 Reg Reqs Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected. The formula for days' sales uncollected is: (Accounts Receivable, net + Net Sales) * 365 (3) DAYS.Sales Vocollected Choose Numerator 1 Choose Denominator x Days Days Sales Uncollected 1 = Days sales uncollected 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. (B) 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. Hea 10 Ite 11 Reg1 and 2 Req Reg4 tes Req6 Reg 2 Res Hea Compute the day sales in inventory The formula for days' sales in Inventory is: (Ending Inventory + cost of Goods Sold) x 365 HU Ht Choose Danemo Days Dasan inventory days
