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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
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, $49,900; total assets, $189,400; common stock, $87,000; and retained earnings, $31,139.)
CABOT CORPORATION Income Statement For Current Year Ended December 31 | |||
Sales | $ | 456,600 | |
Cost of goods sold | 297,350 | ||
Gross profit | 159,250 | ||
Operating expenses | 99,200 | ||
Interest expense | 4,100 | ||
Income before taxes | 55,950 | ||
Income tax expense | 22,539 | ||
Net income | $ | 33,411 | |
CABOT CORPORATION Balance Sheet December 31 | |||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 14,000 | Accounts payable | $ | 15,500 | ||
Short-term investments | 9,400 | Accrued wages payable | 3,000 | ||||
Accounts receivable, net | 31,400 | Income taxes payable | 3,800 | ||||
Merchandise inventory | 36,150 | Long-term note payable, secured by mortgage on plant assets | 69,400 | ||||
Prepaid expenses | 3,000 | Common stock | 87,000 | ||||
Plant assets, net | 149,300 | Retained earnings | 64,550 | ||||
Total assets | $ | 243,250 | Total liabilities and equity | $ | 243,250 |
Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned + / Times interest earned 1 o times Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: 1 1 Profit margin ratio Profit margin ratio 0 % 1 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. (9) Total Asset Turnover Choose Numerator: 1 Choose Denominator: Total Asset Turnover 1 Total asset turnover 1 = 0 times Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on total assets. (10) Return on Total Assets Choose Numerator: 1 Choose Denominator: Return on Total Assets 1 = Return on total assets 1 = 0 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Reg 7 Req 8 Req 9 Reg 10 Reg 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Numerator: Choose Denominator = Return On Common Stockholders' Equity Return on common stockholders' equity = 1 /
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