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, 2014, were inventory, $54,900; total

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $54,900; total assets, $229,400; common stock, $88,000; and retained earnings, $50,670.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $451,600 298,450 Gross profit Operating expenses Interest expense 153,150 98,800 4,900 Income before taxes Income taxes 49,450 19,920 Net income $ 29,530 CABOT CORPORATION Balance Sheet December 31, 2015 Liabilities and Equity Accounts payable Accrued Income taxes payable Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory Prepaid expenses Plant assets, net $ 20,000 31,000 30,150 9,400 8,000 ong-term note payable, s 3,050 $15,500 3,800 3,000 wages payable red by mortgage on plant assets Common stock 63,400 88,000 80,200 152,300 Retained earnings Total assets $253,900 Total liabilities and equity $253,900 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.)

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_2

Step: 3

blur-text-image_3

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

Principles Of Financial Accounting

Authors: Christine Jonick

1st Edition

1940771153, 9781940771151

More Books

Students also viewed these Accounting questions

Question

Under what conditions are two qualitative variables independent?

Answered: 1 week ago

Question

consider how qualitative data can add value to your research;

Answered: 1 week ago

Question

consider the use of electronically obtained qualitative data;

Answered: 1 week ago