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) returnon equity.Note: Do not round intermediate calculations.Complete this question by entering your answers in the tabs below.Req 1 and 2Req 3(11)Compute the return on equity.Numerator:Req 4Net income$32,2171// $Req 5Req 6DenominatorAverage total equityReturn on EquityReq 7< Req 10Req 8==207,858 X =*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.Req 9Req 11 >Req 10Req 11Return On EquityReturn on equity15.5% 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, $52,900; total assets, $229,400; common stock, $82,000; and retained earnings,$45,833.)AssetsCashShort-term investmentsAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsCABOT CORPORATIONIncome StatementFor Current Year Ended December 31SalesCost of goods soldGross profit$ 22,0009,00033,60038,1503,100149, 300$255,150Operating expensesInterest expenseIncome before taxesIncome tax expenseNet income$ 455,600297,650157,95099, 2004,80053,95021,733$32,217CABOT CORPORATIONBalance SheetDecember 31 of current yearLiabilities and EquityAccounts payableAccrued wages payableIncome taxes payableLong-term note payable, secured by mortgage on plant assetsCommon stockRetained earningsTotal liabilities and equity$ 18,5002,8003,40070,40082,00078,050$ 255, 150Required: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) returnon equity.Note: Do not round intermediate calculations.

The ratio analysis helps to analyse the financial statements of the business on the basis of the…

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. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Compute the return on equity. (11) Numerator: Req 4 Net income 32,217✔ Req 5 Req 6 Denominator Average total equity $ Return on Equity. Req 7 < Req 10 Req 8 = = 207,858 X = Req 9 Req 11 > Req 10 Req 11 Return On Equity Return on equity 15.5 %

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. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Compute the return on equity. (11) Numerator: Req 4 Net income 32,217✔ Req 5 Req 6 Denominator Average total equity $ Return on Equity. Req 7 < Req 10 Req 8 = = 207,858 X = Req 9 Req 11 > Req 10 Req 11 Return On Equity Return on equity 15.5 %

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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a spreedsheet is needed to complete for this question. PR17-04b from Cegage accounting 2 (financial statement analysis)
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