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 transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage 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, $48,900; total assets, $189,400; common stock, $88,000; and retained earnings, $25,918.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 10,000 Accounts payable 8,000 29,000 Accrued wages payable Income taxes payable. 38,150 Long-term note payable, secured by mortgage on plant assets 2,950 Common stock 151,300 Retained earnings $ 239,400 Total liabilities and equity For Current Year Ended December 311 Sales Cost of goods sold $ 453,600 298,050 Gross profit 155,550 Operating expenses 99,200 Interest expense 4,300 Income before taxes 52,050 Income tax expense 20,968 $31,082 $ 18,500 3,000 3,500 69,400 88,000 57,000 $ 239,400 Net income 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

Step: 3

blur-text-image

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

Financial Accounting

Authors: Walter T. Harrison, Charles T. Horngren

7th edition

0135012848, 978-0135012840

More Books

Students also viewed these Accounting questions

Question

what is the entry to record the application of overhead

Answered: 1 week ago

Question

What kind of recognition are you most happy about?

Answered: 1 week ago