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CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 455,600 297,150 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 158,450 99,600 4,200 54,650 22,015 32,635 $ CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 20,000 Accounts payable 9,200 Accrued wages payable 28,800 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 153,300 $ 248,450 Total liabilities and equity Retained earnings $ 15,500 4,800 4,500 65,400 86,000 72,250 $ 248,450

CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 455,600 297,150 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 158,450 99,600 4,200 54,650 22,015 32,635 $ CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 20,000 Accounts payable 9,200 Accrued wages payable 28,800 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 153,300 $ 248,450 Total liabilities and equity Retained earnings $ 15,500 4,800 4,500 65,400 86,000 72,250 $ 248,450

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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Please do not give image format and solve all required
CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 455,600 297,150 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 158,450 99,600 4,200 54,650 22,015 32,635 $ CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 20,000 Accounts payable 9,200 Accrued wages payable 28,800 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 153,300 Retained earnings $ 248,450 Total liabilities and equity $ 15,500 4,800 4,500 65,400 86,000 72,250 $ 248,450
Transcribed Image Text:CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 455,600 297,150 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 158,450 99,600 4,200 54,650 22,015 32,635 $ CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 20,000 Accounts payable 9,200 Accrued wages payable 28,800 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 153,300 Retained earnings $ 248,450 Total liabilities and equity $ 15,500 4,800 4,500 65,400 86,000 72,250 $ 248,450
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 Compute the current ratio and acid-test ratio. (1) Req 3 (2) Choose Numerator: Choose Numerator: Req 4 Req 1 and 2 Req 3 Choose Numerator: 1 I Req 4 Req 5 Current Ratio /Choose Denominator: 1 1 Req 6 Acid-Test Ratio 1 Choose Denominator: 7 1 Compute the days' sales uncollected. (3) G Req 5 Show Transcribed Text Complete this question by entering your answers in the tabs below. Req 6 Req 7 X = Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in i (6) debt-to-equity ratio. (7) times interest earned. (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and on common stockholders' equity. (Do not round intermediate calculations.) X Days' Sales Uncollected Choose Denominator: x Days < Req 1 and 2 Current Ratio Current ratio Acid-Test Ratio = Acid-Test Ratio Req 8 Req 7 to 1 = = Req 9 to 1 C Req 10 Req 8 = Days Sales Uncollected Days sales uncollected days Req 4 > Req 9 Req 11 Req 10 Req 11
Transcribed Image Text: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 Compute the current ratio and acid-test ratio. (1) Req 3 (2) Choose Numerator: Choose Numerator: Req 4 Req 1 and 2 Req 3 Choose Numerator: 1 I Req 4 Req 5 Current Ratio /Choose Denominator: 1 1 Req 6 Acid-Test Ratio 1 Choose Denominator: 7 1 Compute the days' sales uncollected. (3) G Req 5 Show Transcribed Text Complete this question by entering your answers in the tabs below. Req 6 Req 7 X = Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in i (6) debt-to-equity ratio. (7) times interest earned. (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and on common stockholders' equity. (Do not round intermediate calculations.) X Days' Sales Uncollected Choose Denominator: x Days < Req 1 and 2 Current Ratio Current ratio Acid-Test Ratio = Acid-Test Ratio Req 8 Req 7 to 1 = = Req 9 to 1 C Req 10 Req 8 = Days Sales Uncollected Days sales uncollected days Req 4 > Req 9 Req 11 Req 10 Req 11
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