Question
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $53,900; total
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $53,900; total assets, $249,400; common stock, $83,000; and retained earnings, $52,734.) |
CABOT CORPORATION Income Statement For Year Ended December 31, 2015 | ||
Sales | $ | 448,600 |
Cost of goods sold | 298,350 | |
Gross profit | 150,250 | |
Operating expenses | 99,100 | |
Interest expense | 3,900 | |
Income before taxes | 47,250 | |
Income taxes | 19,034 | |
Net income | $ | 28,216 |
CABOT CORPORATION Balance Sheet December 31, 2015 | ||||||
Assets | Liabilities and Equity | |||||
Cash | $ | 12,000 | Accounts payable | $ | 17,500 | |
Short-term investments | 9,600 | Accrued wages payable | 4,200 | |||
Accounts receivable, net | 33,800 | Income taxes payable | 4,400 | |||
Notes receivable (trade)* | 6,000 | Long-term note payable, secured | ||||
Merchandise inventory | 40,150 | by mortgage on plant assets | 65,400 | |||
Prepaid expenses | 2,600 | Common stock | 83,000 | |||
Plant assets, net | 151,300 | Retained earnings | 80,950 | |||
Total assets | $ | 255,450 | Total liabilities and equity | $ | 255,450 | |
* These are short-term notes receivable arising from customer (trade) sales. |
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.) |
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