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
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 $47.900; total assets, $239,400, common stock, $81,000; and retained earnings. $53,875.) CAHOT CORPORATION Income Statement For Current Year Ended December 31 Sales $452,600 Cost of goods sold 298,550 Gross profit 154,050 Operating expenses 98,900 Interest expense 4200 Income before taxes 50,950 Income tax expense 20,525 Net Income $ 39,425 Assets $ Short-term investments Accounts receivable, net Merchandise inventory CAROT CORPORATION Balance Sheet December 31 Liabilities and Equity 14,000 Accounts payable 8,00 Accrued was payable 33,200 Income taxes payable 40,150 Lontere note payable, secured by mortgage on plant assets 2.550 Canon stock 154.100 Retained earnings $ 252,600 Total liabilities and equity 16,500 3,000 1,400 64,400 Prepaid expenses Plant assets, net Total assets 1,000 34,00 5252.600 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 Reg 4 Regs Req Reg 2 Regs Reg Rog 10 Req11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choone Denominator: Choose Numerator Current Ratio Current ratio 0 101 (2) Acid-Test Ratio Choose Denominator Choose Numerator: Acid-Test Ratio Aod Test Ratio Oto 1 1 Reg 3 > 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 Reg 4 Reg 5 Reg 6 Req Req8 Rega Reg 10 Reg 11 Compute the days' sales uncollected (3) Choose Numerator Days Sales Uncollected Choose Denominator: X Days Days Sales Uncollected Days sales un colected X days

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

Accounting For Deferred Income Taxes

Authors: Bobby Carmichael

2nd Edition

1119724562, 9781119724568

More Books

Students also viewed these Accounting questions

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago