Can you please check my work Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amountsat December 31 of the prior year were inventory, $53,900; total assets, $219,400; common stock, $84,000; and retained earnings,$37,047.)CABOT CORPORATIONIncome StatementFor Current Year Ended December 31SalesCost of goods soldGross profitOperating expensesInterest expense$ 449,600297,750151,85099,3004,40048,15019,397Income before taxesIncome tax expenseNet income$28,753CABOT CORPORATIONBalance SheetDecember 31AssetsLiabilities and EquityAccounts payableAccrued wages payableIncome taxes payable32,150 Long-term note payable, secured bymortgage on plant assetsCommon stockCash$ 14,0008,60030,600$16,5003,6002,90067,400Short-term investmentsAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net2,550152,300 Retained earnings84,00065,800$ 240,200Total assets$ 240,200Total liabilities and equity 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, (1O) return on total assets, and (11) returnon common stockholders' equity. (Do not round intermediate calculations.)Complete this question by entering your answers in the tabs below.Req 1 and 2Req 3Req 4Req 5Req 6Req 7Req 8Req 9Req 10Req 11Compute the return on common stockholders' equity.(11)Return on Common Stockholders' Equity.Choose Numerator:Choose DenominatorReturn On Common Stockholders' EquityCurrent assetsCurrent liabilitiesI Average common stockholders' equityReturn on common stockholders' equity2$14,0002$86,000| /2$23,000(313.0) %%3D< Req 10Req 11 >

Answered: Required: Compute the following: (1)…

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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Can you please check my work

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, $53,900; total assets, $219,400; common stock, $84,000; and retained earnings,
$37,047.)
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
$ 449,600
297,750
151,850
99,300
4,400
48,150
19,397
Income before taxes
Income tax expense
Net income
$
28,753
CABOT CORPORATION
Balance Sheet
December 31
Assets
Liabilities and Equity
Accounts payable
Accrued wages payable
Income taxes payable
32,150 Long-term note payable, secured by
mortgage on plant assets
Common stock
Cash
$ 14,000
8,600
30,600
$
16,500
3,600
2,900
67,400
Short-term investments
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
2,550
152,300 Retained earnings
84,000
65,800
$ 240,200
Total assets
$ 240,200
Total liabilities and equity

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, (1O) 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
Req 4
Req 5
Req 6
Req 7
Req 8
Req 9
Req 10
Req 11
Compute the return on common stockholders' equity.
(11)
Return on Common Stockholders' Equity.
Choose Numerator:
Choose Denominator
Return On Common Stockholders' Equity
Current assets
Current liabilities
I Average common stockholders' equity
Return on common stockholders' equity
2$
14,000
2$
86,000| /
2$
23,000
(313.0) %
%3D
< Req 10
Req 11 >

Expert Solution

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Common stock: These are the shares issued by a company to an outsider. These shares entitle a share of ownership to the person acquired them. The holders of these shares will have voting powers and can elect the board of directors. In the event of liquidation, the holders of these shares will get a right on corporation's assets only after the preferred debts were paid off.

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