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, $219,400; common stock, $83,000; and retained earnings, $39,956.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,050 Gross profit 151,550 Operating expenses 99,400 Interest expense 4,100 Income before taxes 48,050 Income tax expense 19,356 Net income $ 28,694 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 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, $47,900; total assets, $219,400; common stock, $83,000; and retained earnings, $39,956.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,050 Gross profit 151,550 Operating expenses 99,400 Interest expense 4,100 Income before taxes 48,050 Income tax expense 19,356 Net income $ 28,694 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 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.)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.2.2MBA
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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, $47,900; total assets, $219,400; common stock, $83,000; and
CABOT CORPORATION Income Statement For Current Year Ended December 31 |
|||
Sales | $ | 448,600 | |
Cost of goods sold | 297,050 | ||
Gross profit | 151,550 | ||
Operating expenses | 99,400 | ||
Interest expense | 4,100 | ||
Income before taxes | 48,050 | ||
Income tax expense | 19,356 | ||
Net income | $ | 28,694 |
CABOT CORPORATION Balance Sheet December 31 |
|||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 10,000 | Accounts payable | $ | 19,500 | ||
Short-term investments | 8,000 | Accrued wages payable | 3,400 | ||||
33,600 | Income taxes payable | 2,900 | |||||
Merchandise inventory | 42,150 | Long-term note payable, secured by mortgage on plant assets | 66,400 | ||||
Prepaid expenses | 2,800 | Common stock | 83,000 | ||||
Plant assets, net | 147,300 | Retained earnings | 68,650 | ||||
Total assets | $ | 243,850 | Total liabilities and equity | $ | 243,850 | ||
CABOT CORPORATION Balance Sheet December 31 |
|||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 10,000 | Accounts payable | $ | 19,500 | ||
Short-term investments | 8,000 | Accrued wages payable | 3,400 | ||||
Accounts receivable, net | 33,600 | Income taxes payable | 2,900 | ||||
Merchandise inventory | 42,150 | Long-term note payable, secured by mortgage on plant assets | 66,400 | ||||
Prepaid expenses | 2,800 | Common stock | 83,000 | ||||
Plant assets, net | 147,300 | Retained earnings | 68,650 | ||||
Total assets | $ | 243,850 | Total liabilities and equity | $ | 243,850 | ||
Required:
Compute the following: (1)
![Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Req 4
Req 5
Req 6
Req 7
Req 8
Req 9
Feq 10
Req 11
Compute the return on total assets.
(10)
Return on Total Assets
Choose Numerator:
Choose Denominator:
Return on Total Assets
Return on total assets
%3D
0 %
< Req 9
Req 11 >
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2bcd9420-2e71-4537-86fb-91c5a0e6047d%2F7833e0d7-8e60-4aae-ba54-987149d8353d%2Fl2ottmq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Req 4
Req 5
Req 6
Req 7
Req 8
Req 9
Feq 10
Req 11
Compute the return on total assets.
(10)
Return on Total Assets
Choose Numerator:
Choose Denominator:
Return on Total Assets
Return on total assets
%3D
0 %
< Req 9
Req 11 >
II
![Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Req 4
Req 5
Req 6
Req 7
Req 8
Req 9
Req 10
Req 11
Compute the total asset turnover.
(9)
Total Asset Turnover
Choose Numerator:
Choose Denominator:
Total Asset Turnover
Total asset turnover
%3D
0 times
%3D
< Req 8
Req 10 >
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2bcd9420-2e71-4537-86fb-91c5a0e6047d%2F7833e0d7-8e60-4aae-ba54-987149d8353d%2Fam6w8ym_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Req 4
Req 5
Req 6
Req 7
Req 8
Req 9
Req 10
Req 11
Compute the total asset turnover.
(9)
Total Asset Turnover
Choose Numerator:
Choose Denominator:
Total Asset Turnover
Total asset turnover
%3D
0 times
%3D
< Req 8
Req 10 >
II
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