Please answer Requirement 4,5,6,7,8,9,10 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net + 16,000 Accounts payable 8,200 Accrued wages payable 30, 600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 153,300 Retained earnings $ 251, 300 Total liabilities and equity 4 18,500 4, 400 3,000 63,400 e1,000 81,000 6 251, 300 Total ansets CABOT CORPORATION Income Statement For Current Year Ended December 31 4 454, 600 297,150 157,450 99,100 4, 300 54,050 ר7 ,21 $ 32,276 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 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. (Do not round intermediate calculations.)
Please answer Requirement 4,5,6,7,8,9,10 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net + 16,000 Accounts payable 8,200 Accrued wages payable 30, 600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 153,300 Retained earnings $ 251, 300 Total liabilities and equity 4 18,500 4, 400 3,000 63,400 e1,000 81,000 6 251, 300 Total ansets CABOT CORPORATION Income Statement For Current Year Ended December 31 4 454, 600 297,150 157,450 99,100 4, 300 54,050 ר7 ,21 $ 32,276 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 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. (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Please answer Requirement 4,5,6,7,8,9,10
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts
at December 31 of the prior year were inventory, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings,
$48,724.)
CABOT CORPORATION
Balance Sheet
December 31 of current year
Liabilities and Equity
Assets
Cash
$ 16,000 Accounts payable
8,200 Accrued wages payable
30, 600 Income taxes payable
40,150 Long-term note payable, secured by mortgage on plant assets
3,050 Common stock
153, 300 Retained earnings
6 251,300 Total liabilities and equity
: 18,500
4,400
3,000
63,400
81,000
81,000
6 251, 300
Short-term investments
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total asseta
CABOT CORPORATION
Income Statement
Sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income before taxes
Income tax expense
For Current Year Ended Decenber 31
$ 454, 600
297,150
157,450
99,100
4, 300
54,050
21,774
6 32,276
Income
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 tumover, (10) return on total assets, and (11) retum
on equity. (Do not round intermediate calculations.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F618a8805-882b-4ca4-83eb-fc79fd1c5dd0%2F4d64d403-0704-40d4-af31-a6100b7be233%2Flm03i4h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Please answer Requirement 4,5,6,7,8,9,10
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts
at December 31 of the prior year were inventory, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings,
$48,724.)
CABOT CORPORATION
Balance Sheet
December 31 of current year
Liabilities and Equity
Assets
Cash
$ 16,000 Accounts payable
8,200 Accrued wages payable
30, 600 Income taxes payable
40,150 Long-term note payable, secured by mortgage on plant assets
3,050 Common stock
153, 300 Retained earnings
6 251,300 Total liabilities and equity
: 18,500
4,400
3,000
63,400
81,000
81,000
6 251, 300
Short-term investments
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total asseta
CABOT CORPORATION
Income Statement
Sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income before taxes
Income tax expense
For Current Year Ended Decenber 31
$ 454, 600
297,150
157,450
99,100
4, 300
54,050
21,774
6 32,276
Income
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 tumover, (10) return on total assets, and (11) retum
on equity. (Do not round intermediate calculations.)
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