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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, $47,900; total assets, $199,400; common stock, $86,000; and retained earnings. $30,369.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit CABOT CORPORATION Income Statement For Current Year Ended December 31 Operating expenses Interest expense Income before taxes Income tax expense Net income Req 1 and 2 Req 3 (8) Compute the profit margin ratio. Req 4 Numerator: December 31 of current year Liabilities and Equity Accounts payable $ 18,000 9,280 Accrued wages payable 29,080 Income taxes payable 32,158 2,758 151,380 $ 242,400 Total liabilities and equity $ 449,600 298,150 151,450 98,70 Complete this question by entering your answers in the tabs below. 3,800 48,950 19,719 $ 29,231 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 esmed. (8) profit margin ratio, (9) total asset turnover. (10) return on total assets, and (11) return on equity. Note: Do not round Intermediate calculations. 1 1 1 CABOT CORPORATION Balance Sheet Long-term note payable, secured by mortgage on plant assets Cormon stock Retained earnings Req 5 < Req 7 Req 6 Profit Margin Ratio Denominator: Req 7 = = = Req 8 Req 9 Profit margin ratio Profit margin ratio Req 9 > % Req 10 $ 18,500 4,400 3,500 Req 11 70,400 86,000 59,600 $ 242,400

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, $47,900; total assets, $199,400; common stock, $86,000; and retained earnings. $30,369.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit CABOT CORPORATION Income Statement For Current Year Ended December 31 Operating expenses Interest expense Income before taxes Income tax expense Net income Req 1 and 2 Req 3 (8) Compute the profit margin ratio. Req 4 Numerator: December 31 of current year Liabilities and Equity Accounts payable $ 18,000 9,280 Accrued wages payable 29,080 Income taxes payable 32,158 2,758 151,380 $ 242,400 Total liabilities and equity $ 449,600 298,150 151,450 98,70 Complete this question by entering your answers in the tabs below. 3,800 48,950 19,719 $ 29,231 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 esmed. (8) profit margin ratio, (9) total asset turnover. (10) return on total assets, and (11) return on equity. Note: Do not round Intermediate calculations. 1 1 1 CABOT CORPORATION Balance Sheet Long-term note payable, secured by mortgage on plant assets Cormon stock Retained earnings Req 5 < Req 7 Req 6 Profit Margin Ratio Denominator: Req 7 = = = Req 8 Req 9 Profit margin ratio Profit margin ratio Req 9 > % Req 10 $ 18,500 4,400 3,500 Req 11 70,400 86,000 59,600 $ 242,400

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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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, $47,900; total assets, $199,400; common stock, $86,000; and retained earnings. $30,369.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net incore CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 449,600 298,150 151,450 98,700 3,800 Req 1 and 2 Req 3 (8) Compute the profit margin ratio. Complete this question by entering your answers in the tabs below. Req 4 Numerator: $ 18,080 9,280 Accrued wages payable 29,000 Income taxes payable 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 esmed. (8) profit margin ratio, (9) total asset turnover. (10) return on total assets, and (11) return on equity. Note: Do not round Intermediate calculations. 32,158 Long-term note payable, secured by mortgage on plant assets 2,758 Cormon stock 151,300 Retained earnings $ 242,400 Total liabilities and equity. 48,950 19,719 $ 29,231 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable I 1 1 Req 5 Reg 6 Profit Margin Ratio Denominator: < Req 7 Req 7 Req 8 Req 9 Profit margin ratlo Profit margin ratio Raq 9 > 0% Req 10 $ 18,500 4,400 3,500 70,400 Req 11 86,000 59,600 $ 242,400
Transcribed Image Text: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, $47,900; total assets, $199,400; common stock, $86,000; and retained earnings. $30,369.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net incore CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 449,600 298,150 151,450 98,700 3,800 Req 1 and 2 Req 3 (8) Compute the profit margin ratio. Complete this question by entering your answers in the tabs below. Req 4 Numerator: $ 18,080 9,280 Accrued wages payable 29,000 Income taxes payable 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 esmed. (8) profit margin ratio, (9) total asset turnover. (10) return on total assets, and (11) return on equity. Note: Do not round Intermediate calculations. 32,158 Long-term note payable, secured by mortgage on plant assets 2,758 Cormon stock 151,300 Retained earnings $ 242,400 Total liabilities and equity. 48,950 19,719 $ 29,231 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable I 1 1 Req 5 Reg 6 Profit Margin Ratio Denominator: < Req 7 Req 7 Req 8 Req 9 Profit margin ratlo Profit margin ratio Raq 9 > 0% Req 10 $ 18,500 4,400 3,500 70,400 Req 11 86,000 59,600 $ 242,400
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