Answered step by step
Verified Expert Solution
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, $51,900; total
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016, were inventory, $51,900; total assets, $179,400; common stock, $90,000; and retained earnings, $33,523.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income $451,600 297,750 153,856 98,700 4,700 50,450 20,323 $ 30,127 CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity AssetS Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory $ 8,000 Accounts payable $ 16,500 3,000 4,400 9,000 Accrued wages payable 31,400 Income taxes payable 7,000 36,150 Long-term note payable, secured by 68,400 mortgage on plant assets Prepaid expenses Plant assets, net Total assets 3,100 Common stock 151,300 Retained earnings 90,000 63,650 $ 245,950 $245,950 Total liabilities and equity * 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.) Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started