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 transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage 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, $56,900; total assets, $259,400; common stock, $80,000; and retained earnings, $36,273.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales 451,600 Cost of goods sold Gross profit Operating expenses Interest expense 297,950 153,650 98,900 4,300 Income before taxes 50,450 20,323 Income tax expense Net income 30,127 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Accounts payable Accrued wages payable 31,400 Income taxes payable 42,150 Long -term note payable, secured by Assets Cash 10,000 8,000 15,500 3,200 4,000 72,400 Short-term investments Accounts receivable, net Merchandise inventory mortgage on plant assets Prepaid expenses Plant assets, net Common stock 2,650 147,300 Retained earnings 80,000 66,400 $ 241,500 241,500 Total liabilities and equity Total assets Required: Compute the following: () 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 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Choose Denominator: Current Ratio Current ratio 0 to 1 Acid-Test Ratio (2) Choose Denominator: Choose Numerator: Acid-Test Ratio = Acid-Test Ratio / 0 to 1

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_2

Step: 3

blur-text-image_3

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

Social Work Policy Practice Changing Our Community Nation And The World

Authors: Jessica A Ritter

3rd Edition

179354087X, 9781793540874

More Books

Students also viewed these Accounting questions

Question

6 Compare and contrast mentoring and coaching.

Answered: 1 week ago