Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected year end financial Statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016 were inventory. S47.900;

image text in transcribed
image text in transcribed
image text in transcribed
Selected year end financial Statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016 were inventory. S47.900; total assets, $259.400: common stock. $89.000, and retained earnings $34455 CABOT CORPORATION Income Statement To Year Ended December 31, 2017 Sales $ 454,600 cost of goods sold 297,950 Gross profit 156,65e Operating expenses 98,700 Interest expense 4.700 Income before taxes 53,250 Income taxes 21,451 Net income 31,799 5 $ CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 12,000 Accounts payable 8.400 Accrued wages payable 3520 Takes payable 40,150 Long tere nate payable, secured by mortgage on plant assets 2,50 Common stock 1 Retained menings 5 245,059 Total Tibilities wity Assets Cash Short-term Investments Accounts receivable, net Notes receivable (trade) Merchandise Inventory Prepaid expenses Plant assets, net Total assets 4,600 3,300 66,250 240.050 These are short-term notes receivable arising from customer de sales Required: Compute the following. (1) current ratio, (2) acid test ratio (3) days sales cincollected 14 inventory turnover (5) says sales in Inventory. (6) debt-to-equity ratio (7) times interest earned 18 profit margin ratio. 191 total asset turnover (10) return on total assets, and (11) return on common stockholders equity (Do not found intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg4 Regs Reas Reg? Rega Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Choose Numerator: Days' Sales in Inventory 1 Choose Denominator 1 Days Sales In Inventory Days sales in Inventory days 2017: Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016, were inventory. $47.900: total assets. $259,400, common stock, $89,000; and retained earnings. $34,451) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 454,600 Cost of goods sold 297,950 Gross profit 156,65e Operating expenses 98,700 Interest expense 4,700 Income before taxes 53,250 Income taxes 21,451 Net Income $ 31,799 Assets Cash Short-ters Investments Accounts receivable, net Notes receivable (trade)" Merchandise Inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 12,000 Accounts payable 8.400 Accrued wages payable 33,200 Income taxes payable 4,500 40,150 Long-tere note payable, secured by mortgage on plant assets 2,50 Common stock 147,30 Retained earnings $ 245,050 Total liabilities and equity $ 17,500 4.600 3,300 67,400 89,800 66.250 5248.se These are short-term notes receivable arising from customer trade sales. Required: Compute the following: (current ratio. (2) acid-test ratio) days sales uncollected. (4) inventory turnover. (5) days' sales in Inventory. (6) debt-to-equity ratio. (7) times interest eamed, 18) 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. Reg 1 and 2 Req3 Reg 4 Regs Reg? Rega Req Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Debt to Equity Ratio Choose Denominator Choose Numerator: Debt to Equity Ratio Debt-to-equity ratio 2017: ( Reqs Reg? > Selected year end financial statements of Cabot Corporation follow. All sales were on credit, selected balance sheet amounts at December 31, 2016, were inventory $47900 total assets $259.400.common stock 589.000, and retained eamings. $34,451 CABOT CORPORATTON Income Statement Year Ended December 31, 2017 $ 454,600 Cost of gold 156,650 98,700 Interestis 4,700 Tere before taxes 53.250 The taxes 21,451 Net income $ 31,799 CABOT CORPORATION December 31, 2017 Liabilities and Equity 12,600 Accounts payable 8,400 Accrued wages payable 33,200 Income taxes payable $17.500 Assets Cash Short-term investments Accounts receivable.net Notes receivable (trade) Merchandise Inventory Prepaid expenses Plant assets, net Total assets 67,400 40,150 Long-term wote payable, secured by mortgage on plant assets 2,500 Common stock 142.380 Retained earnings 243,95e Total liabilities and equity 66.250 $ 248,ese These are short-term notes receivable arising from customer grade sales Required: Compute the following it current ratio. (2) acid-test ratio. (3) days' sales uncollected. (4) inventory turnover. (5) days sales in Inventory. (6) debt-to-equity ratio, times interest earned, is profit margin-ratio 19 total asset turnover. [10return on total assets, and (1) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Beg 7 Regs Red Reg 10 Reg 11 Reas Reg i and 2 Reg 3 Regt Compute the times interest earned. Times Interest Earned 1 Choose Denominator Choose Numerator Times Interest Emmed Times Inforest eamed imes 2017 ( Reqs Hege >

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

SAP Certified Application Associate Financial Accounting With SAP ERP 6 0

Authors: Kiran K ,Augustine D

1st Edition

1544118724, 978-1544118727

More Books

Students also viewed these Accounting questions

Question

27. Let . Show that if , then

Answered: 1 week ago

Question

How did you feel about taking piano lessons as a child? (general)

Answered: 1 week ago