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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. $49,900; total assets, $229,400; common stock, $85,000; and retained earnings, $49,468) 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 $ 20.000 Accounts payable 9.000 Accrued wages payable 32,400 Income taxes payable 36.150 Long-term note payable, secured by mortgage on plant assets 3,100 153,300 Common stock Retained earnings Total assets $ 253,950 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 298,350 Gross profit 156,250 Operating expenses 99,366 Interest expense 4,900 Income before taxes 52,050 Income tax expense 20,968 Net income $31,082 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 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on total assets, (10) Numerator: Net income $ Return on Total Assets Denominator: Average total assets Return on Total Assets Return on total assets 31,082 096 Req9 Req 11 > $ 19,500 3,000 3,500 62,400 85,000 88,550 $ 253,950

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. $49,900; total assets, $229,400; common stock, $85,000; and retained earnings, $49,468) 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 $ 20.000 Accounts payable 9.000 Accrued wages payable 32,400 Income taxes payable 36.150 Long-term note payable, secured by mortgage on plant assets 3,100 153,300 Common stock Retained earnings Total assets $ 253,950 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 298,350 Gross profit 156,250 Operating expenses 99,366 Interest expense 4,900 Income before taxes 52,050 Income tax expense 20,968 Net income $31,082 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 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on total assets, (10) Numerator: Net income $ Return on Total Assets Denominator: Average total assets Return on Total Assets Return on total assets 31,082 096 Req9 Req 11 > $ 19,500 3,000 3,500 62,400 85,000 88,550 $ 253,950

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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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. $49,900; total assets, $229,400; common stock, $85,000; and retained earnings, $49,468) 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 $ 20.000 Accounts payable 9.000 Accrued wages payable 32,400 Income taxes payable 36.150 Long-term note payable, secured by mortgage on plant assets 3,100 153,300 Common stock Retained earnings Total assets $ 253,950 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 298,350 Gross profit 156,250 Operating expenses 99,366 Interest expense 4,900 Income before taxes 52,050 Income tax expense 20,968 Net income $31,082 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 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on total assets, (10) Numerator: Net income $ Return on Total Assets Denominator: Average total assets Return on Total Assets Return on total assets 31,082 096 Req9 Req 11 > $ 19,500 3,000 3,500 62,400 85,000 88,550 $ 253,950
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. $49,900; total assets, $229,400; common stock, $85,000; and retained earnings, $49,468) 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 $ 20.000 Accounts payable 9.000 Accrued wages payable 32,400 Income taxes payable 36.150 Long-term note payable, secured by mortgage on plant assets 3,100 153,300 Common stock Retained earnings Total assets $ 253,950 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 298,350 Gross profit 156,250 Operating expenses 99,366 Interest expense 4,900 Income before taxes 52,050 Income tax expense 20,968 Net income $31,082 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 Reg 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on total assets, (10) Numerator: Net income $ Return on Total Assets Denominator: Average total assets Return on Total Assets Return on total assets 31,082 096 Req9 Req 11 > $ 19,500 3,000 3,500 62,400 85,000 88,550 $ 253,950
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