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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
| 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 | ||||
| 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 | 68,650 | |||||
| Total assets | $ | 243,850 | Total liabilities and equity | $ | 243,850 | ||
Required:
Compute the following: (1)
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
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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