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, $199,400, common stock, $87000; and retained earnings, $37115) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 456,680 Cost of goods sold 297.950 Gross profit 158,650 Operating expenses 99,200 Interest expense 4.300 Encone before taxes $4,650 Income taxes 22,01 Net Income 32,635 5 Assets Cash Short term investments Accounts receivable net Notes receivable (trade) Merchandise Inventory 17.500 3,200 3,200 CADOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 18,000 Accounts payable 8,400 Accrued wages payable 32,200 Income taxes payable 6,000 32,150 Long-term nate payable, secured by mortgage on plant assets 3,000 Comon stock 148 309 Retained earnings $240,50 Total abilities and equity 67,400 Prepaid expenses Plant assets net Total assets 87.000 69.750 $ 245,050 *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 tumover. (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 Reg 3 Reg4 Reg 5 Reg 6 Red Reqs Reg. Reg 10 Reg Req 1 and 2 Req 3 Req 4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Rep 11 Compute the current ratio and acid-test ratio. Choose Numerator: Current Ratio Choose Denominator: Current Ratio 1 Current ratio 2017: to 1 (2) Acid-Test Ratio 1 Choose Denominator: Choose Numerator: Acid Test Ratio Acid-Test Ratio to 1 2017: Req3 > KER Req 5 Reg 6 Req 1 and 2 Req3 Reg 4 h Compute the days' sales uncollected. Req 7 Req8 Reg 9 Reg 10 Reg (3) Choose Numerator: Days Sales Uncollected Choose Denominator: Days X Days Sales Uncollected X = Days sales uncollected 2017: X days
Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 Reg 9 Req 10 Reg 11 Compute the inventory turnover. (4) Choose Numerator: Inventory Turnover 1 Choose Denominator 1 Inventory Turnover Inventory tumover times 2017: Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Reg 7 Reg 8 Req9 Reg 10 Rog 11 Compute the days' sales in inventory (5) Choose Numerator: Days' Sales in Inventory Choose Denominator: Days X Days' Sales In Inventory Days'sales In Inventory days 2017: = S Rega Req> M Req 1 and 2 Req 3 Reg 4 Reg 5 Regolo Req 7 Reg 8 Req 9 Req 10 Reg 1 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominato Choose Numerator: Debt-to-Equity Ratio Debt-to-equity ratio to 1 2017: Req 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Reg 7 Req8 Req9 Req 10 Reg 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned = Times interest eamed 2017: times Req 1 and 2 Req 3 Req 4 Reg 5 Req 6 Req 7 Req 8 Req9 Req 10 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio 96 2017: Req? Reg 9 ) Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Req 8 Reg 9 Reg 10 Reg Compute the total asset turnover. (9) Total Asset urnover Choose Denominator: Choose Numerator: 1 Total Asset Turnover Total asset turnover times 2017: Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the return on total assets. (10) Return on Total Assets Choose Denominator: 1 Choose Numerator: Return on Total Assets Return on total assets 2017 Reg 11 > KER Req 5 Reg 6 Req 1 and 2 Req3 Reg 4 h Compute the days' sales uncollected. Req 7 Req8 Reg 9 Reg 10 Reg (3) Choose Numerator: Days Sales Uncollected Choose Denominator: Days X Days Sales Uncollected X = Days sales uncollected 2017: X days Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 Reg 9 Req 10 Reg 11 Compute the inventory turnover. (4) Choose Numerator: Inventory Turnover 1 Choose Denominator 1 Inventory Turnover Inventory tumover times 2017: Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Reg 7 Reg 8 Req9 Reg 10 Rog 11 Compute the days' sales in inventory (5) Choose Numerator: Days' Sales in Inventory Choose Denominator: Days X Days' Sales In Inventory Days'sales In Inventory days 2017: = S Rega Req> M Req 1 and 2 Req 3 Reg 4 Reg 5 Regolo Req 7 Reg 8 Req 9 Req 10 Reg 1 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominato Choose Numerator: Debt-to-Equity Ratio Debt-to-equity ratio to 1 2017: Req 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Reg 7 Req8 Req9 Req 10 Reg 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned = Times interest eamed 2017: times Req 1 and 2 Req 3 Req 4 Reg 5 Req 6 Req 7 Req 8 Req9 Req 10 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio 96 2017: Req? Reg 9 ) Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Req 8 Reg 9 Reg 10 Reg Compute the total asset turnover. (9) Total Asset urnover Choose Denominator: Choose Numerator: 1 Total Asset Turnover Total asset turnover times 2017: Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the return on total assets. (10) Return on Total Assets Choose Denominator: 1 Choose Numerator: Return on Total Assets Return on total assets 2017 Reg 11 >
