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, $50,900; total assets, $229,400; common stock, $90,000; and retained earnings, $36,836.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 14,000 Accounts payable 9,400 Accrued wages payable 30,800 Income taxes payable $ 16,500 4,600 4,700 40, 150 3,050 153,300 Long-term note payable, secured by mortgage on plant assets Common stock 67,400 90,000 Retained earnings 67,500 Total assets $ 250,700 Total liabilities and equity $ 250,700 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $ 453,600 297,950 155,650 Operating expenses Interest expense Income before taxes Income tax expense Net income Required: 99,400 4,900 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