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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, $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 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 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 14,000 9,400 Req 1 and 2 Req 3 Req 4 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 28,800 42,150 2,700 148,300 Retained earnings $ 245,350 Total liabilities and equity Complete this question by entering your answers in the tabs below. Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock 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.) Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 $ 19,500 4,400 4,500 72,400 Req 11 90,000 54,550 $ 245,350

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 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 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 14,000 9,400 Req 1 and 2 Req 3 Req 4 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 28,800 42,150 2,700 148,300 Retained earnings $ 245,350 Total liabilities and equity Complete this question by entering your answers in the tabs below. Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock 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.) Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 $ 19,500 4,400 4,500 72,400 Req 11 90,000 54,550 $ 245,350

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I just need help with number 7.

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 Cost of goods sold Gross profit For Current Year Ended December 31 Sales $ 454,600 297,150 157,450 99,100 4,600 Operating expenses. Interest expense Income before taxes Income tax expense Net income Req 1 and 2 $ 14,000 9,400 28,800 42,150 2,700 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 Req 3 Req 4 53,750 21,653 $ 32,097 Complete this question by entering your answers in the tabs below. CABOT CORPORATION Balance Sheet. December 31 of current year 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.) Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 $ 19,500 4,400 4,500 Req 11 72,400 90,000 54,550 $ 245,350
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 Cost of goods sold Gross profit For Current Year Ended December 31 Sales $ 454,600 297,150 157,450 99,100 4,600 Operating expenses. Interest expense Income before taxes Income tax expense Net income Req 1 and 2 $ 14,000 9,400 28,800 42,150 2,700 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 Req 3 Req 4 53,750 21,653 $ 32,097 Complete this question by entering your answers in the tabs below. CABOT CORPORATION Balance Sheet. December 31 of current year 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.) Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 $ 19,500 4,400 4,500 Req 11 72,400 90,000 54,550 $ 245,350
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