Question
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $50,900; total
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $50,900; total assets, $179,400; common stock, $100,000; and retained earnings, $52,348.) |
CABOT CORPORATION Income Statement For Year Ended December 31, 2013 | ||
Sales | $ | 449,600 |
Cost of goods sold | 297,750 | |
Gross profit | 151,850 | |
Operating expenses | 98,700 | |
Interest expense | 4,700 | |
Income before taxes | 48,450 | |
Income taxes | 19,518 | |
Net income | $ | 28,932 |
CABOT CORPORATION Balance Sheet December 31, 2013 | ||||||
Assets | Liabilities and Equity | |||||
Cash | $ | 22,000 | Accounts payable | $ | 16,500 | |
Short-term investments | 9,400 | Accrued wages payable | 3,400 | |||
Accounts receivable, net | 30,400 | Income taxes payable | 3,000 | |||
Notes receivable (trade)* | 6,000 | Long-term note payable, secured | ||||
Merchandise inventory | 34,150 | by mortgage on plant assets | 64,400 | |||
Prepaid expenses | 2,450 | Common stock | 100,000 | |||
Plant assets, net | 149,300 | Retained earnings | 66,400 | |||
Total assets | $ | 253,700 | Total liabilities and equity | $ | 253,700 | |
* 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.(Use 365 days a year. Do not round intermediate calculations.) |
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