Req 1 and 2 Req 3Compute the days' sales uncollected.(3)Req 1 and 2 Req 3Req 1 and 2Numerator:Req 1 and 2Req 4Compute the inventory turnover.(4)(6)Numerator:Req 3Compute the days' sales in inventory.(5)Numerator:Req 3Req 5Req 4Req 4Numerator:Compute the debt-to-equity ratio.Req 4111I11Req 6111Req 5Days' Sales UncollectedDenominator:Req 5Req 7< Req 1 and 2Req 6Inventory TurnoverDenominator:< Req 3Req 5Req 6Req 8Days' Sales in Inventory.Denominator:< Req 4Req 7Req 6Debt-to-Equity RatioDenominator:Req 9DaysReq 4 >Req 71111Req 8Req 7x Days ==Req 5 >Req 6 >11Req 1011Req 8Days Sales UncollectedDays sales uncollecteddaysInventory TurnoverInventory turnovertimesReq 11Req 9Req 9Req 8Req 10Days' Sales in InventoryDays' sales in inventorydaysReq 9Debt-to-Equity RatioDebt-to-equity ratioto 1 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amountsat December 31 of the prior year were inventory, $51,900; total assets, $249,400; common stock, $81,000; and retained earnings,$36,386.)AssetsCashShort-term investmentsAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsCABOT CORPORATIONIncome StatementFor Current Year Ended December 31Sales$ 448,600Cost of goods sold297,950Gross profit150,65098,7004,20047,75019,236$ 28,514Operating expensesInterest expenseIncome before taxesIncome tax expenseNet incomeCABOT CORPORATIONBalance SheetDecember 31 of current yearLiabilities and Equity$ 18,0008,40030,400 Income taxes payable34,150 Long-term note payable, secured by mortgage on plant assetsCommon stock2,750150,300 Retained earnings$244,000 Total liabilities and equityAccounts payableAccrued wages payable$ 18,5004,0003,20072,40081,00064,900$ 244,000Required: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) returnon equity.Note: Do not round intermediate calculations.

The ratio analysis helps to analyze the financial statements of the business. The debt-to-equity…

Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit For Current Year Ended December 31 $ 448,600 297,950 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 18,000 Accounts payable 8,400 Accrued wages payable 30,400 Income taxes payable CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 34,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 150,300 Retained earnings $ 244,000 Total liabilities and equity 150,650 98,700 4,200 47,750 19,236 $ 28,514 $ 18,500 4,000 3,200 72,400 81,000 64,900 $ 244,000 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 equity.

Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit For Current Year Ended December 31 $ 448,600 297,950 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 18,000 Accounts payable 8,400 Accrued wages payable 30,400 Income taxes payable CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 34,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 150,300 Retained earnings $ 244,000 Total liabilities and equity 150,650 98,700 4,200 47,750 19,236 $ 28,514 $ 18,500 4,000 3,200 72,400 81,000 64,900 $ 244,000 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 equity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about the two companies’ performances based on these numbers?
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CABOT CORPORATIONBalance SheetDecember 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 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.)
Vishnu
Sales Revenue Less: Cost of Goods Sold Gross Profits Less: Operating Expenses Operating Profits Less: Interest Expense Net Profits Before Taxes Less: Taxes (40%) Net Profits After Taxes Assets Cash Income Statement Pulp, Paper and Paperboard, Inc. For the Year Ended December 31, 2019 Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and stockholders' equity Current liabilities Balance Sheet Pulp, Paper and Paperboard, Inc. December 31, 2019 Accounts payable Notes payable Accruals Total current liabilities Long-term debts Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Calculate the following: NP, GP $2,080,976 1,701,000 $ 379,976 273,846 $ 106,130 19,296 S 86,834 34,810 S 52,024 Current Ratio - Quick Ratio Receivable days - Payable days $ 95,000 237,000 243.000 $ 575,000 500,000 75.000 $ 425,000…
Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 298,350 152,250 99,300 4,500 Cost of goods sold Gross profit Operating expenses Interest expense. Income before taxes Income tax expense Net income $ 10,000 Accounts payable Accrued wages payable 9,200 31,400 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 152,300 Retained earnings $ 236,100 Total liabilities and equity CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 48,450 19,518 $ 28,932 $ 17,500 3,800 4,700 69,400 88,000 52,700 $ 236,100 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…
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 31,800 89,500 112,500. 10,700 278,500 $ 523,000 Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $ 129,900 98,500 163,500 131,100 $ 523,000 Current Year $ 411,225 209,550 1 Year Ago $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 4 12,100 9,525 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 673,500 2 Years Ago 642,400 $ 31,100 $ 1.90 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $51,250 83,500 163,500 79,250 $ 377,500 1 Year Ago $ 345,500…
CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 297,150 151,450 98,600 5,000 47,850 19,276 $ 28,574 Cost of goods sold Gross profit Operating expenses Interest expense Profit before taxes Income tax expense Net profit Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Property, plant and equipment, net Total assets Req 1 and 2 Req 3 Req 4 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Req 5 8,000 Accounts payable 8,800 Accrued wages payable 32,400 Income taxes payable 2,750 Share capital 150,300 Retained earnings $ 238,400 Total liabilities and equity Complete this question by entering your answers in the tabs below. Compute the current ratio and acid-test ratio. 36,150 Long-term note payable, secured by mortgage on property, plant and equipment Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days'…
Can you show me how this problem supposed to be worked out
Assets Line Item Description Amount Cash and short-term investments $42,572 Accounts receivable (net) 33,774 Inventory 37,691 Property, plant, and equipment 215,705 Total assets $329,742 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $68,960 Long-term liabilities 98,919 Common stock, $10 par 64,740 Retained earnings 97,123 Total liabilities and stockholders’ equity $329,742 Income Statement Line Item Description Amount Sales $91,805 Cost of goods sold (41,312) Gross profit $50,493 Operating expenses (28,002) Net income $22,491 Number of shares of common stock 6,474 Market price of common stock $28 What is the current ratio?