Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance...
Get step-by-step solutions with AI-powered insights and expert guidance to help you understand core concepts.
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657c4384a008_8966657c43844fe3.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657c438a0dec_8966657c4389bb81.jpg)
Transcribed Image Text:
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, $249,400; common stock. $83,000, and retained earnings. $37.743.) Assets Cash Short-ters investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION $ 12,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,200 Accrued wages payable: 31,400 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 149,300 Retained earnings $244,500 Total liabilities and equity Income Statement For Current Year Ended December 31 $ 19,500 4,600 3,500 64,400 83,000 69,500 $244,500 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before tases Income tax expense Net Income Required: $455,600 298,350 157,250 99,500 3,900 53,858 21,695 532,157 Compute the following: (t) current ratio, (2) acid-test ratio, () days' sales uncollected, (4) inventory turmover. (5) days' sales in inventory (6) debt-to-equity ratio, (2) times interest earned, (8) profit margin ratio. (9) total asset turnover (10) return on total assets, and (t) return on 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, $50,900; total assets, $249,400; common stock. $83,000, and retained earnings. $37.743.) Assets Cash Short-ters investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION $ 12,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,200 Accrued wages payable: 31,400 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 149,300 Retained earnings $244,500 Total liabilities and equity Income Statement For Current Year Ended December 31 $ 19,500 4,600 3,500 64,400 83,000 69,500 $244,500 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before tases Income tax expense Net Income Required: $455,600 298,350 157,250 99,500 3,900 53,858 21,695 532,157 Compute the following: (t) current ratio, (2) acid-test ratio, () days' sales uncollected, (4) inventory turmover. (5) days' sales in inventory (6) debt-to-equity ratio, (2) times interest earned, (8) profit margin ratio. (9) total asset turnover (10) return on total assets, and (t) return on equity. (Do not round intermediate calculations.)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Which managerial skills do you think are among your strengths? Which are among your weaknesses? How might you improve the latter?
-
On March 20, Batavia's petty cash fund of $100 is replenished when the fund contains %*) in cash and receipts lor postage $52. freight-out $26, and travel expense $10. Prepare the journal entry to...
-
Describe the discipline of organizational change management. AppendixLO1
-
McNabb Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented, all in the year 2010. How should these costs be...
-
In 2016, Oriole sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $300 per unit, and fixed expenses were $120000. The same selling price is expected for 2017....
-
Exercise 20-11 (Algo) Change in depreciation methods [LO20-3] The Canliss Milling Company purchased machinery on January 2, 2019, for $830,000. A five-year life was estimates value was anticipated....
-
You want to retire after working 35 years with savings in excess of $1,100,000. You expect to save $3,300 a year for 35 years and earn an annual rate of Interest of 11%. (Round your answer to 2...
-
FOLLOW ALL INSTRUCTIONS AND GENERATE YOUR CODE AFTER READING THE JUNIT TESTS, THAT IS ALL THE METHODS AND CONSTRUCTORS YOU USE SHOULD BE BASED ON THE JUNIT TESTS PROVIDED. I HAVE ATTATCHED THE JAVA...
-
Are some values in the class data grossly different from all the others? If so, check for errors in calculation or procedure that would allow to objectively eliminate the data. 2. Do the range values...
-
An aging analysis of Uli Limited's accounts receivable at December 3 1 , 2 0 2 4 and 2 0 2 3 , showed the following: Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible...
-
(Linear momentum) Two jets of liquid, one with specific gravity 1.00 and the other with specific gravity 1.33, collide and form one homogeneous jet as shown in the figure below. Determine (a) the...
-
Sekiranya kadar pertukaran berubah dari RM2.5 = $1 ke RM3.00 = $1, maka O A. nilai ringgit telah menyusut sebab ia memerlukan lebih sedikit ringgit untuk membeli 1 dolar Australia O B. nilai ringgit...
-
Use and evaluate the two main discounted cash flow (DCF) methods, the net present value (NPV) method, and the internal rate-of-return (IRR) method
-
On March 3, 1993 the common stock price of Leslie Fay, the nations second largest maker of womens apparel, dropped from 12 3/8 to 5 1/4, when it was discovered that reported profits of $23.9 million...
-
Forbes (June 20, 1994) reports: Yes, there are hidden reserves in Switzerland, Germany and Sweden. But that doesnt mean that there is more to these companies than meets the eye. Loosey-goosey...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App