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, $48,900; total assets, $249,400; common stock, $90,000; and retained earnings, $22,453.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Cost of goods sold Gross profit $ 14,000 9,400 Operating expenses Interest expense Income before taxes Income tax expense Net income 28,800 42,150 2,700 CABOT CORPORATION Income Statement. For Current Year Ended December 31 Sales $ 454,600 297,150 157,450 99,100 4,600 53,750 21,653 $ 32,097 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock 148,300 Retained earnings $245,350 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, (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. $ 19,500 4,400 4,500 72,400 90,000 54,550 $ 245,350 T
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, $48,900; total assets, $249,400; common stock, $90,000; and retained earnings, $22,453.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Cost of goods sold Gross profit $ 14,000 9,400 Operating expenses Interest expense Income before taxes Income tax expense Net income 28,800 42,150 2,700 CABOT CORPORATION Income Statement. For Current Year Ended December 31 Sales $ 454,600 297,150 157,450 99,100 4,600 53,750 21,653 $ 32,097 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock 148,300 Retained earnings $245,350 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, (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. $ 19,500 4,400 4,500 72,400 90,000 54,550 $ 245,350 T
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with number 10 and 11.
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, $48,900; total assets, $249,400; common stock, $90,000; and retained earnings,
$22,453.)
Assets
Cash
Short-term investments
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
CABOT CORPORATION
Income Statement
$ 14,000
9,400
28,800
Operating expenses
Interest expense
Income before taxes.
Income tax expense
Net income
For Current Year Ended December 31
Sales
$ 454,600
297,150
Cost of goods sold
Gross profit
42,150
Long-term note payable, secured by mortgage on plant assets
Common stock.
2,700
148,300
Retained earnings
$ 245, 350 Total liabilities and equity
157,450
99,100
CABOT CORPORATION
Balance Sheet
December 31 of current year.
Liabilities and Equity
4,600
53,750
21,653
$ 32,097
Accounts payable
Accrued wages payable
Income taxes payable
$ 19,500
4,400
4,500
72,400
90,000
54,550
$ 245,350
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. (Do not round intermediate calculations.)
Complete this question by entering your answers in the tabs below.
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