Answered step by step
Verified Expert Solution
Question
1 Approved Answer
show all working Selected current year-end financial statements of Cabot Corporation follow (All sales were on credit, selected balance sheet amounts at December 31 of
show all working
Selected current year-end financial statements of Cabot Corporation follow (All sales were on credit, selected balance sheet amounts at December 31 of the prior year were inventory $52.900, total assets, $249.400, common stock. $85,000, and retained earnings, $42.779) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 456, 600 Cost of goods sold 297,250 Gross profit 159, 35e Operating expenses 98,300 Interest expense 4,500 Income before taxes 56,950 Income tax expense 22.579 Net income $ 33,471 Assets Cash Short-term Investments Accounts receivable, net Merchandise Inventory CABOT CORPORATION Balance Sheet December 31 Uabilities and Equity 5 16,000 Accounts payable 3,600 Accrued wages payable 34,000 Incone taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 3,100 Comon stock 154,300 Retained earnings $ 254,350 total abilities and equity 18.500 3,600 4.000 66,400 Prepaid expenses plant assets, net Total assets 25,000 76) 250 $ 254,350 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 eamed (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (1) 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 Rego Reg 4 Red 5 Rego Req7 Reg 8 Reg Reg 10 Reg 11 Compute the current ratio and acid-test ratio 10 Current RatioStep 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