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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.

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.

Corporate Financial Accounting
Corporate Financial Accounting
15th Edition
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Carl Warren, Jeff Jones
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.7BE: To determine: Times interest earned ratio Given info: Income before income tax and interest expense....
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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. Req 1 and 2 Req 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Numerator: Choose Denominator: Profit margin ratio Profit margin ratio %3D < Req 7 Req 9 %3D
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Numerator: Choose Denominator: Profit margin ratio Profit margin ratio %3D < Req 7 Req 9 %3D
02:44:30 (6) debt-to-equity ratio, (7) times interest earhed, (8) profit marginTaio, 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 Reg 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned 0 times %D < Req 6 Req 8 > II II
Transcribed Image Text:02:44:30 (6) debt-to-equity ratio, (7) times interest earhed, (8) profit marginTaio, 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 Reg 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned 0 times %D < Req 6 Req 8 > II II
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