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, $55,900; total assets, $229,400; common stock, $81,000; and retained earnings, $40,712.)
CABOT CORPORATION Income Statement For Current Year Ended December 31 | |||
Sales | $ | 451,600 | |
Cost of goods sold | 297,950 | ||
Gross profit | 153,650 | ||
Operating expenses | 99,300 | ||
Interest expense | 4,300 | ||
Income before taxes | 50,050 | ||
Income tax expense | 20,162 | ||
Net income | $ | 29,888 | |
CABOT CORPORATION Balance Sheet December 31 | |||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 18,000 | Accounts payable | $ | 17,500 | ||
Short-term investments | 8,600 | Accrued wages payable | 3,200 | ||||
Accounts receivable, net | 30,400 | Income taxes payable | 4,500 | ||||
Merchandise inventory | 38,150 | Long-term note payable, secured by mortgage on plant assets | 69,400 | ||||
Prepaid expenses | 2,750 | Common stock | 81,000 | ||||
Plant assets, net | 148,300 | Retained earnings | 70,600 | ||||
Total assets | $ | 246,200 | Total liabilities and equity | $ | 246,200 | ||
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.)
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 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Req 11 Compute the current ratio and acid-test ratio. Current Ratio Choose Numerator: Choose Denominator: Current Ratio = Current ratio 1 to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 1 to 1 Reg 1 and 2 Reg 3 > Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover, (5) days' sales (6) debt-to-equity ratio, (7) times Interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, a 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 Reqs Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: Days Choose Numerator: Days Sales Uncollected Days sales uncollected x days (6) debt-to-equity ratlo, times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total as 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 Reg 5 Reg 6 Req7 Reg 8 Reg 9 Reg 10 Reg 1 Compute the inventory turnover. Inventory Turnover Choose Numerator: Choose Denominator: Inventory Turnover Inventory turnover times Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover, (5) days's (6) debt-to-equity ratio, (7) times Interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total asse on common stockholders' equity. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory. Choose Denominator: Choose Numerator: Days Days' Sales in Inventory Days' sales in inventory days Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover, (5) days' sales in (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and on common stockholders' equity. (Do not round Intermediate calculations.) ed Complete this question by entering your answers in the tabs below. k Req 1 and 2 Reg 3 Req 4 Req5 ces Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Req 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: = Debt-to-Equity Ratio Debt-to-equity ratio to 1 1 (6) debt-to-equity ratio, (7) times Interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, 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 Req7 Reg 8 Reg 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned = Times interest earned 1 times (6) debt-to-equity ratio, (7) times Interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, an on common stockholders' equity. (Do not round Intermediate calculations.) Ded Complete this question by entering your answers in the tabs below. ok nces Req 1 and 2 Reg 3 Reg 4 Reqs Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio Choose Denominator: Profit margin ratio Profit margin ratio 96 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 Req5 Reg 6 Req7 Reg & Reg 9 Reg 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover Choose Numerator: Choose Denominator: Total Asset Turnover Total asset turnover times (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and 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 Reqs Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on total assets. (10) Return on Total Assets Choose Numerator: 1 Choose Denominator: Return on Total Assets Return on total assets 96 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 Reg 7 Reqs Reg 9 Req 10 Reg 11 Compute the return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity Choose Denominator = Return On Common Stockholders' Equity = Return on common stockholders' equity =
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