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, $169,400; common stock, $90,000; and retained earnings,
$28,425)
Required:Compute the following: (1) current ratio, (2) acid-test ratio, (3) days) sales uncollected. (4) inventory turnover: (5) days' sales in inventory,(S) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover; (10) return on total assets, and (11) returnon equity. (Do not round intermediate calculations.)
Required:
Compute the following: (1) current ratio, (2) acid-test ratio, (3) days) sales uncollected. (4) inventory turnover: (5) days' sales in inventory,
(S) 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.)
- Selected Current Year End Financial Statements Of Cabot Corporation Follow All Sales Were On Credit Selected Balance 1 (60.2 KiB) Viewed 48 times
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, $169,400; common stock, $90,000; and retained earnings. $28,425.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash $ 16,000 8,600 Accounts payable $ 15,500 Accrued wages payable 3,809 34,200 Income taxes payable 3,200 Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 36,150 Long-term note payable, secured by mortgage on plant assets 72,400 2,650 Common stock 90,000 61,000 148,300 Retained earnings $ 245,900 Total liabilities and equity $ 245,900 CABOT CORPORATION Income Statement. For Current Year Ended December 31 Sale! $ 455,600 297,650 Cost of goods sold. Gross profit 157,958 Operating expenses 98,700 4,700 Interest expense Income before taxes 54,550 21,975 Income tax expense Net Income $ 32,575 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.)