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, $87,000, and retained earnings, $37115) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 456,600 Cost of goods sold 297.950 Gross profit 158,650 Operating expenses 99,200 Interest expense 4.800 Income before taxes 54,650 Income taxes 22.015 Net income $ 32,635 $ Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory 17,500 3,200 3,200 CABOT 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 note payable, secured by mortgage on plant assets 3,880 Common stock 148,390 Retained earning $ 248,050 Total liabilities and equity 67,400 Prepaid expenses Plant assets, net Cotal assets 87,000 69,750 $ 248,050 BE Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory 17.5 3,200 3,208 CABOT CORPORATION Balance Sheet December 31, 2012 Liabilities and Equity 18,000 Accounts payable 8,480 Accrued wages payable 32,280 Income taxes payable 6,000 32,150 Long-term note payable, secured by mortgage on plant assets 3,000 Connon stock 148,300 Retained earnings $ 248,050 Total liabilities and equity 67,400 Prepaid expenses plant assets, net Total assets 87,000 69,750 $ 24,050 * 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 turnover (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.) Req 1 and 2 Req 3 Reg 4 Reg 5 Reg hey Compute the current ratio and acid-test ratio. (0) Current Ratio Choose Denominator: Choose Numerator: Current Ratio Current ratio 11 7 = 0 to 1 11 2017: (2) Acid Test Ratio 7 Choose Denominator: Choose Numerator: 11 Acid-Test Ratio Acid-Test Ratio 0 to 1 11 2017: Req3 > Menu Home Complete this question by entering your answers in the Reg 9 Reg 10 Reg 8 Reg 7 Req 6 Req 4 Reg 5 Req 1 and 2 Reg 3 Compute the days' sales uncollected. (3) Days Sales Uncollected Choose Denominator: X Days Days Sales Uncollected Choose Numerator: Days sales uncollected 0 days X 2017: Req 4 > D3 Req9 Reg 10 hangs Req 8 Req 7 Reg 6 5 Req 4 Req 1 and 2 Req3 Compute the days' sales in inventory. (5) Days Sales in Inventory Choose Denominator: Days X X Choose Numerator: Days' Sales in Inventory Days' sales in inventory 0 days 2017: Req6 Req 4 Reg 8 Req 9 Req 7 Req 4 Reg 6 Reg 3 Reg 5 Req 1 and 2 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: 11 1 Debt-to-Equity Ratio Debt-to-equity ratio 0 0 to 1 1 1 2017: Reg 7 > Re Req 10 Red B Req 9 Reg 6 Req 7 Req 4 Req 5 Req 1 and 2 Reg 3 Compute the times interest earned. Times Interest Earned in Choose Denominator: Times Interest Earned Choose Numerator: Times interest earned O times 2017: Ren8 > Comp (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio 0 % 11 2017: Req9>
