Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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, $51,900; total assets, $179,400; common stock, $83,000; and retained earnings, $40,246.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 14,000 Accounts payable 8,800 Accrued wages payable 31,600 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,500 148,300 Common stock Retained earnings $ 243,350 Total liabilities and equity Income Statement 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 $ 452,600 298,450 154,150 98,800 4,100 51,250 20,646 $ 30,604 $ 16,500 3,600 4,000 65,400 83,000 70,850 $ 243,350 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 equity. (Do not round intermediate calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Introduction To Financial Accounting

Authors: Henry Dauderis, David Annand

1st Edition

1517089719, 978-1517089719

More Books

Students also viewed these Accounting questions

Question

Evaluate each logarithm to four decimal places. log 0.257

Answered: 1 week ago