Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 13-4A Calculation of financial statement ratios LO P3 Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit: selected balance sheet

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 13-4A Calculation of financial statement ratios LO P3 Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit: selected balance sheet amounts at December 31, 2016, were inventory, $50,900; total assets, $249,400; common stock. $90,000; and retained earnings, $43,304.) OK CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 451,600 Cost of goods sold 298,050 Gross profit 153,550 Operating expenses 99,000 Interest expense 3.900 Income before taxes 50,650 Income taxes 20,404 Net income $ 30,246 int Tences $ Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 22,000 Accounts payable 9,400 Accrued wages payable 29,600 Income taxes payable 5,500 34,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 151,300 Retained earnings $ 255,050 Total liabilities and equity 16,500 3,200 3,400 68,400 Prepaid expenses Plant assets, net Total assets 90,000 73,550 $ 255,050 * 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 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 invento (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) retu on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req8 Reg9 Reg 10 Compute the current ratio and acid-test ratio. Choose Numerator: Current Ratio Choose Denominator: - Current Ratio Current ratio 2017: to 1 Acid-Test Ratio Choose Denominator: Choose Numerator: - = Acid-Test Ratio Acid-Test Ratio 2017: to 1 Red 1 and 2 Req3 > Exercise 13-3 Computation and analysis of trend percents LO P1 Sales Cost of goods sold Accounts receivable 2017 2016 2015 2014 2013 $ 671,646 $ 436,134 $ 353,145 $ 237,010 $ 173,000 324,840 210,944 172,710 115,565 83,040 32,642 25,601 24,190 13,841 11,868 Compute trend percents for the above accounts, using 2013 as the base year. Trend Percent for Net Sales: 1 Choose Denominator: Choose Numerator: Sales 2017: 2016: 2015: 1 2014: I Trend Percent for Cost of Goods Sold: 1 Choose Denominator: Choose Numerator: Cost of goods sold 2017: 2016: 2015: 2014: Trend Percent for Accounts Receivables: 1 Choose Denominator: Choose Numerator: - Accounts receivable 1 Choose Denominator: Sales 2017: 2016: 2015: 2014: Trend Percent for Cost of Goods Sold: 1 Choose Denominator: Choose Numerator: Cost of goods sold 2017: 2016: 2015: 2014: Trend Percent for Accounts Receivables: 1 Choose Denominator: Choose Numerator: = Accounts receivable 2017: 2016: 2015: 2014

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

Step: 3

blur-text-image

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

Corporate Finance Demystified

Authors: Troy Adair

1st Edition

0071459103, 9780071459105

More Books

Students also viewed these Accounting questions

Question

=+a) Find a linear model for this series.

Answered: 1 week ago