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CABOT CORPORATION Balance Sheet December 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,

CABOT CORPORATION Balance Sheet December 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,

FINANCIAL ACCOUNTING
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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CABOT CORPORATION
Balance Sheet
December 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.)

 

Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Re 6 Reg 7 Reg Reg 9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Debt-to-Eouity Ratio - Debt-to-quity Ratio Debt-to-egulty ratio Choose Numerator Choose Denominator: ( Reg 5 Req 7>
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Re 6 Reg 7 Reg Reg 9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Debt-to-Eouity Ratio - Debt-to-quity Ratio Debt-to-egulty ratio Choose Numerator Choose Denominator: ( Reg 5 Req 7>
Complete this question by entering your answers in the tabs below. Reg i and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. Days Sales in Inventory Choose Denominator (5) Choose Numerator: Days - Days' Sales in Inventory -Days sales in inventory O days < Req 4 Req 6 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Reg i and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. Days Sales in Inventory Choose Denominator (5) Choose Numerator: Days - Days' Sales in Inventory -Days sales in inventory O days < Req 4 Req 6 >
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