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
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, $169,400, common stock, $81,000, and retained earnings, $52,138) CABOT CORPORATION Incone Statement For Current Year Ended December 31 Sales $ 449,600 Cost of goods sold 297,450 Gross profit 152, 150 Operating expenses 99,000 Interest expense 4,400 Income before taxes 48,750 Income tax expense 19,638 Net income $ 29,112 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 18,000 Accounts payable 9,000 Accrued wages payable 32,800 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 149 300 Retained earnings 3 250,350 Total liabilities and equity $ 16,500 4,200 3,000 64,400 81,000 B1,25 $ 250,350 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, (B) profit margin ratio (9) total asset turnover (h) 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. Red 1 and 2 R4 Reg. Hea Rego Reg He 10 Heg 11 Compute the current ratio and acid-test ratio

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

Software Engineering Reviews And Audits

Authors: Boyd L. Summers

1st Edition

143985145X, 978-1439851456

More Books

Students also viewed these Accounting questions