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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, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 16,000 Accounts payable 8,200 Accrued wages payable 30,600 Income taxes payable 40,150 Long-tern note payable, secured by mortgage on plant assets 3,050 Common stock 153,300 Retained earnings $ 251, 300 Total liabilities and equity $ 18,500 4,400 3,000 63,400 81,000 81,000 $ 251, 300 Total assets CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes For Current Year Ended December 31 $ 454,600 297,150 157,450 99,100 4,300 54,050 21,774 $ 32,276 Income tax expense Net income 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.)

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, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 16,000 Accounts payable 8,200 Accrued wages payable 30,600 Income taxes payable 40,150 Long-tern note payable, secured by mortgage on plant assets 3,050 Common stock 153,300 Retained earnings $ 251, 300 Total liabilities and equity $ 18,500 4,400 3,000 63,400 81,000 81,000 $ 251, 300 Total assets CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes For Current Year Ended December 31 $ 454,600 297,150 157,450 99,100 4,300 54,050 21,774 $ 32,276 Income tax expense Net income 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.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 11P: Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as...
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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, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 16,000 Accounts payable 8,200 Accrued wages payable 30,600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 153,300 Retained earnings $ 251, 300 Total liabilities and equity $ 18,500 4,400 3,000 63,400 81,000 81,000 $ 251, 300 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 454,600 297,150 157,450 99,100 4,300 54,050 21,774 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income $ 32,276 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.)
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, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 16,000 Accounts payable 8,200 Accrued wages payable 30,600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 153,300 Retained earnings $ 251, 300 Total liabilities and equity $ 18,500 4,400 3,000 63,400 81,000 81,000 $ 251, 300 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 454,600 297,150 157,450 99,100 4,300 54,050 21,774 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income $ 32,276 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.)
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