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 year

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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, $48,900 total assets, $189.400, common stock, $90,000; and retained earnings, $33748) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,250 Gross profit 151,350 Operating expenses 98,600 Interest expense 4,100 Income before taxes 48,650 Income tax expense 19.598 Net Income $ 29,052 Assets Cash Short-term Investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance sheet December 31 Liabilities and Equity $10,000 Accounts payable 8.400 Accrued wages payable 33,700 Income taxes payable 32,150 Long term note payable secured by mortgage on plant assets 2,650 Common stock 15200 Retained earnings $ 240,200 Total Habilities and equity 12,500 3,200 3,00 62.400 90,000 Prepaid expenses Plant assets, net Total assets 5240,200 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. Req 1 and 2 Reg 3 Req4 Red 5 Reg 6 Reg Reqs Rego Reg 10 Req 11 Compute the current ratio and add-test ratio. (1) Choose Numerator Current Ratio Choose Denominator: Current Ratio Current Ratio to 1 (2) Acid-Test Ratio Choose Denominator Choose Numerator: 1 Acid Test Ratio Acid-Test Ratio 1o 1 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 1 and 2 Reg 3 Reg 4 Regs Req6 Req 7 Req 8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected (3) Days Sales Upcollected Choose Numerator: Choose Denominator: Days 1 x Days Sales Uncollected 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 in (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (11 on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the inventory turnover. (4) Choose Numerator: Inventory Turnover 1 Choose Denominator: Inventory Turnover Inventory Tumover times 1 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. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Rey 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory, Choose Numerator: Days Sales In Inventory Choose Denominator: X Days X Days' Sales In Inventory Days Sales in Inventory days X 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) retum on common stockholders equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Ro 5 lago Reg Req8 ROG 9 Rog 10 Reg 11 Beq 1 and 2 Req Reg 4 Compute the debt-to-equity ratio (6) Choose Numerator Debuto Equity Ratio Choose Denominator: Debt.to.Equity Ratio Debt to Equity Ratio to 1 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) 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 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the times interest earned (77 Choose Numerator: Times Interest Farned 1 Choose Denominator: 1 Times Interest Earned Times interest earned + times Required: Compute the following (1) current ratio, (2) acid-test ratio. (3) days' sales uncollected, (4) inventory tumover. (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. Red 1 and 2 Reg 3 Reg 4 Reqs Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator Profit margin ratio Profit margin ratio 98 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 eamed (8) profit margin ratio (9) total asset tumover (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 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Red B Reg 9 Reg 10 Reg 11 Compute the total asset turnover, 19) Total Asset Turnover Choose Denominator: Choose Numerator Total Asset Turnover Total Asset Turnover times 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) retum on common stockholders' equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg4 Reqs Reg 6 Req Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets 1 Choose Denominator: - Return on Total Assets Return on Total Assets % 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 1 and 2 Rega Req Reg 5 Reg 6 Reg 7 Regs Reg 9 Reg 10 Reg 11 Compute the return on common stockholders' equity, Choose Numerator: Return on Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity = Return On Common Stockholders' Equity

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

Corporate Finance Core Principles and Applications

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

3rd edition

978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200

Students also viewed these Accounting questions