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. $55,900: total assets. $199.400: common stock. $86.000: and retained earnings. $30,037.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 8,000 Accounts payable 8,800 Accrued wages payable 30,200 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 2,500 151,300 Common stock Retained earnings $ 230,950 Total liabilities and equity $16,500 3,400 2,800 63,400 86,000 58,850 $ 230,950 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net incone Required: $ 448,600 297,250 151,350 99,000 4,100 48,250 19,437 $ 28,813 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 Req 4 Req 5 Req 6 Reg 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) (2) Numerator: Current Ratio Denominator: = Current Ratio = Current ratio = to 1 Acid-Test Ratio Numerator: 1 Denominator: = Acid-Test Ratio = Acid-Test Ratio to 1
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. $55,900: total assets. $199.400: common stock. $86.000: and retained earnings. $30,037.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 8,000 Accounts payable 8,800 Accrued wages payable 30,200 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 2,500 151,300 Common stock Retained earnings $ 230,950 Total liabilities and equity $16,500 3,400 2,800 63,400 86,000 58,850 $ 230,950 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net incone Required: $ 448,600 297,250 151,350 99,000 4,100 48,250 19,437 $ 28,813 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 Req 4 Req 5 Req 6 Reg 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) (2) Numerator: Current Ratio Denominator: = Current Ratio = Current ratio = to 1 Acid-Test Ratio Numerator: 1 Denominator: = Acid-Test Ratio = Acid-Test Ratio to 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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. $55,900: total assets. $199.400: common stock. $86.000: and retained earnings.
$30,037.)
Assets
Cash
Short-term investments
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
CABOT CORPORATION
Income Statement
CABOT CORPORATION
Balance Sheet
December 31 of current year
Liabilities and Equity
$ 8,000
Accounts payable
8,800
Accrued wages payable
30,200
Income taxes payable
30,150
Long-term note payable, secured by mortgage on plant assets
2,500
151,300
Common stock
Retained earnings
$ 230,950
Total liabilities and equity
$16,500
3,400
2,800
63,400
86,000
58,850
$ 230,950
For Current Year Ended December 31
Sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income before taxes
Income tax expense
Net incone
Required:
$ 448,600
297,250
151,350
99,000
4,100
48,250
19,437
$ 28,813
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
Req 4
Req 5
Req 6
Reg 7
Req 8
Req 9
Req 10
Req 11
Compute the current ratio and acid-test ratio.
(1)
(2)
Numerator:
Current Ratio
Denominator:
=
Current Ratio
=
Current ratio
=
to 1
Acid-Test Ratio
Numerator:
1
Denominator:
=
Acid-Test Ratio
=
Acid-Test Ratio
to 1
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