Question
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, $50,900; total assets, $199,400; common stock, $84,000; and retained earnings, $39,360.)
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.)
CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 298,250 Gross profit 156, 350 Operating expenses 99,200 Interest expense 4,500 Income before taxes 52,650 Income tax expense 21,210 Net income $ 31,440 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 9,400 Accrued wages payable 34,000 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 149,300 Retained earnings $ 245,900 Total liabilities and equity 17,500 4,600 4,600 64,400 Prepaid expenses Plant assets, net Total assets 84,000 70,800 $ 245,900Step by Step Solution
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