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, $52,900; total assets, $209,400; common stock, $82,000; and retained earnings, $40,297.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 453,600 Cost of goods sold 297,650 Gross profit 155,950 Operating expenses 99,600 Interest expense 4,600 Income before taxes 51,750 Income tax expense 20,847 Net income $ 30,903 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 18,000 Accounts payable $ 18,500 Short-term investments 8,400 Accrued wages payable 2,800 Accounts receivable, net 28,800 Income taxes payable 3,600 Merchandise inventory 32,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses 2,850 Common stock 82,000 Plant assets, net 153,300 Retained earnings 71,200 Total assets $ 243,500 Total liabilities and equity $ 243,500 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 common stockholders' equity. (Do not round intermediate calculations.)
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, $52,900; total assets, $209,400; common stock, $82,000; and retained earnings, $40,297.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 453,600 Cost of goods sold 297,650 Gross profit 155,950 Operating expenses 99,600 Interest expense 4,600 Income before taxes 51,750 Income tax expense 20,847 Net income $ 30,903 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 18,000 Accounts payable $ 18,500 Short-term investments 8,400 Accrued wages payable 2,800 Accounts receivable, net 28,800 Income taxes payable 3,600 Merchandise inventory 32,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses 2,850 Common stock 82,000 Plant assets, net 153,300 Retained earnings 71,200 Total assets $ 243,500 Total liabilities and equity $ 243,500 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 common stockholders' equity. (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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, $52,900; total assets, $209,400; common stock, $82,000; and
CABOT CORPORATION Income Statement For Current Year Ended December 31 |
|||
Sales | $ | 453,600 | |
Cost of goods sold | 297,650 | ||
Gross profit | 155,950 | ||
Operating expenses | 99,600 | ||
Interest expense | 4,600 | ||
Income before taxes | 51,750 | ||
Income tax expense | 20,847 | ||
Net income | $ | 30,903 | |
CABOT CORPORATION Balance Sheet December 31 |
|||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 18,000 | Accounts payable | $ | 18,500 | ||
Short-term investments | 8,400 | Accrued wages payable | 2,800 | ||||
28,800 | Income taxes payable | 3,600 | |||||
Merchandise inventory | 32,150 | Long-term note payable, secured by mortgage on plant assets | 65,400 | ||||
Prepaid expenses | 2,850 | Common stock | 82,000 | ||||
Plant assets, net | 153,300 | Retained earnings | 71,200 | ||||
Total assets | $ | 243,500 | Total liabilities and equity | $ | 243,500 | ||
Required:
Compute the following: (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, $52,900; total assets, $209,400; common stock, $82,000; and retained earnings,
$40,297.)
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$ 453,600
Cost of goods sold
Gross profit
Operating expenses
Interest expense
297,650
155,950
99,600
4,600
51,750
20,847
Income before taxes
Income tax expense
Net income
$4
30,903
CABOT CORPORATION
Balance Sheet
December 31
Liabilities and Equity
Assets
2$
18,000 Accounts payable
8,400 Accrued wages payable
Cash
18, 500
2,800
3,600
Short-term investments
Income taxes payable
Accounts receivable, net
Merchandise inventory
28,800
32,150 Long-term note payable, secured by
65,400
mortgage on plant assets
Prepaid expenses
2,850 Common stock
153,300 Retained earnings
82, 000
71, 200
Plant assets, net
Total assets
$ 243,500 Total liabilities and equity
$ 243,500
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 common stockholders' equity. (Do not round intermediate calculations.)
Complete this question by entering your answers in the tabs below.
Reg 1 and 2
Reg 3
Reg 4
Reg 5
Reg 6
Reg 7
Req 8
Req 9
Reg 10
Reg 11](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F425a9a45-7c16-4159-a26d-51882221639a%2F6bb1c523-ad4e-4b43-b305-73a975f08b19%2F04aoaef_processed.jpeg&w=3840&q=75)
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, $52,900; total assets, $209,400; common stock, $82,000; and retained earnings,
$40,297.)
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$ 453,600
Cost of goods sold
Gross profit
Operating expenses
Interest expense
297,650
155,950
99,600
4,600
51,750
20,847
Income before taxes
Income tax expense
Net income
$4
30,903
CABOT CORPORATION
Balance Sheet
December 31
Liabilities and Equity
Assets
2$
18,000 Accounts payable
8,400 Accrued wages payable
Cash
18, 500
2,800
3,600
Short-term investments
Income taxes payable
Accounts receivable, net
Merchandise inventory
28,800
32,150 Long-term note payable, secured by
65,400
mortgage on plant assets
Prepaid expenses
2,850 Common stock
153,300 Retained earnings
82, 000
71, 200
Plant assets, net
Total assets
$ 243,500 Total liabilities and equity
$ 243,500
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 common stockholders' equity. (Do not round intermediate calculations.)
Complete this question by entering your answers in the tabs below.
Reg 1 and 2
Reg 3
Reg 4
Reg 5
Reg 6
Reg 7
Req 8
Req 9
Reg 10
Reg 11
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: Skinner’s radical behaviorism is set apart by treatment of:
Between 1940 and 1960, the term…
Q: solve problems 4 ans 5
Q: I'm getting so stumped on this integration...we use U-substitution, right?
Q: Behaviorism was slow to catch on. FALSE
What are some synonyms for the word “radical?” Which…
Q: I need help answering the following questions below
Base on Ch. 15 to 17 of The Spirit Catches You…
Q: What was the role of interospection in behaviorism?
Behaviorism was slow to catch on. FALSE…
Q: What was the role of interospection in behaviorism?
Behaviorism was slow to catch on. FALSE…
Q: What was the role of interospection in behaviorism?
Behaviorism was slow to catch on. FALSE…
Q: Show work. don't give Ai generated solution
Q: Do not use Ai
Q: Which of the following molecules is the most hydrophobic?
Group of answer choices
Leucine
Stearic…
Q: Notes on Jamil Jan Kochai’s “Playing Metal Gear Solid V: The Phantom Pain”
What do you expect?…
Q: Of the six most commonly found elements in living things, which four elements have roughly equal…
Q: Do not use Ai
Q: 三
Chapter 4 HOMEWORK
Question 6 of 28 (1 point) | Question Attempt: 7 of Unlimited
✓ 1
2
3
4
✓ 5…
Q: Consider the anaerobic fermentation of glucose to ethanol by yeast. Glucose (C6H12O6) is converted…
Q: 6
Q: 8
Q: 4
Q: 2
Q: 1