Answer Happy

ces 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, $51,900; total assets, $189,400, common stock, $88,000; and retained earnings, $27,564.) Assets Cash Short-term investments i Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Cost of goods sold. Gross profit Operating expenses Interest expense $ 14,000 9,480 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Income before taxes Income tax expense Net income Accounts payable Accrued wages payable 30,600 Income taxes payable 32,158 Long-term note payable, secured by mortgage on plant assets 2,600 Common stock 148,300 Retained earnings i $ 237,050 Total liabilities and equity CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 297,350 153,250 98,800 3,900 50,550 20,364 $ 30,186 $ 16,500 3,600 3,800 67,400 88,000 57,750 $ 237,050 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 1 and 2 Req 3 Compute the current ratio and acid-test ratio. (1) (2) Numerator: Numerator: Reg 4 1 1 1 1 1 Reg 5 Req 6 Current Ratio Denominator: Acid-Test Ratio Denominator: Reg1 and 2 Req 7 W W Req 8 Req 9 Req 3 > Current Ratio Current ratio to 1 Acid-Test Ratio Acid-Test Ratio to 1 Req 10 Req 11
Req 1 and 2 Req 3 Req 4 Compute the days' sales uncollected. (3) Numerator: Req 5 Req 6 Req 7 Days' Sales Uncollected Denominator: < Req 1 and 2 Req 8 Req 9 Days Reg 4 > Reg 10 Req 11 Days Sales Uncollected Days sales uncollected days
Req 1 and 2 Req 3 Compute the inventory turnover. (4) Numerator: Req 4 1 Req 5 Req 6 Inventory Turnover Denominator: < Req 3 Req 7 m = = Req 8 Inventory Turnover Inventory turnover times Req 5 > Req 9 Next > Reg 10 Req 11
Req 1 and 2 Req 3 Req 4 Compute the days' sales in inventory. (5) Numerator: I your answers in the tabs below. Req 5 Req 6 Req 7 Days' Sales in Inventory Denominator: < Req 4 X X Req 8 Days Req6 > Req 9. Reg 10 Days' Sales in Inventory Days' sales in inventory days Req 11
Req 1 and 2 Req 3 Compute the debt-to-equity ratio. (6) Numerator: Req 4 Req 5 Req 6 Debt-to-Equity Ratio Denominator: < Req 5 Req 7 Req 8 Debt-to-Equity Ratio Debt-to-equity ratio Req 7 > Req 9 to 1 Req 10 Reg 11
Req 1 and 2 Req 3 (7) Req 4 Compute the times interest earned. Numerator: Req S Req 6 R4 7 Times Interest Earned 1 1 < Req6 Req 8 Denominator: Req 9 Req> Req 10 Reg 11 Times Interest Eamed Times interest earned times
Req 1 and 2 Req 3 Compute the profit margin ratio. (8) Numerator: Req 4 1 1 Req 5 Req 6 Profit Margin Ratio Denominator: < Req 7 Req 7 Req 8 Req 9 Profit margin ratio Profit margin ratio Req 9 > Req 10 Req 11
Req 1 and 2 Req 3 Compute the total asset turnover. (9) Numerator: Req 4 1 Req 5 Req 6 Total Asset Turnover Denominator: < Req 8 Req 7 Req 8 Reg Total Asset Turnover Total asset turnover times Reg 10 > Req 10 Req 11.
Req 1 and 2 Req 3 (10) Compute the return on total assets. Req 4 Numerator: 1 Req 5 Req 6 Return on Total Assets Denominator: < Req 9 Req 7 Req 8 Req 9 Return on Total Assets Return on total assets Req 11 > Req 10 % Req 11
Req 1 and 2 Req 3 Req 4 Compute the return on equity. Numerator: 1 Req 5 Req 6 Return on Equity Denominator Req 7 < Req 10 Req 8 Reg 9 Req 10 Return On Equity Return on equity Rea 11 %