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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, $49,900; total assets, $209,400; common stock, $87,000; and retained earnings, $41,829.) CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash Short-term investments Accounts receivable, net Merchandise inventory $ 18,e00 Accounts payable 9, 200 Accrued wages payable 30, 800 Income taxes payable 40,150 Long-term note payable, secured by 24 18,500 3,800 4,400 65,40e mortgage on plant assets Prepaid expenses Plant assets, net 2,800 Common stock 151, 300 Retained earnings $ 252, 250 Total liabilities and equity 87, eee 73,15e $ 252, 250 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 453,600 297,85e 155, 750 98, see 4, 800 52,45e 21, 129 31, 321 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes 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 common stockholders' equity. (Do not round Intermedlate 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, $49,900; total assets, $209,400; common stock, $87,000; and retained earnings, $41,829.) CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash Short-term investments Accounts receivable, net Merchandise inventory $ 18,e00 Accounts payable 9, 200 Accrued wages payable 30, 800 Income taxes payable 40,150 Long-term note payable, secured by 24 18,500 3,800 4,400 65,40e mortgage on plant assets Prepaid expenses Plant assets, net 2,800 Common stock 151, 300 Retained earnings $ 252, 250 Total liabilities and equity 87, eee 73,15e $ 252, 250 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 453,600 297,85e 155, 750 98, see 4, 800 52,45e 21, 129 31, 321 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes 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 common stockholders' equity. (Do not round Intermedlate calculations.)

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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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. $49,900: total assets. $209,400; common stock, $87,000; and retained earnings, $41,829.) CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash Short-term investments Accounts receivable, net Merchandise inventory 18, 000 Accounts payable 9, 200 30, 800 Income taxes payable 40,150 Long-term note payable, secured by 18,500 3, 800 4,400 65,400 Accrued wages payable mortgage on plant assets Prepaid expenses Plant assets, net 2,800 Common stock 151, 300 Retained earnings $ 252, 250 Total liabilities and equity 87, e00 73,150 $ 252, 250 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 453, 600 297,850 155,750 98, 500 4,800 52,450 21,129 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 24 31,321 Requlred: 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 Intermedlate 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. $49,900: total assets. $209,400; common stock, $87,000; and retained earnings, $41,829.) CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash Short-term investments Accounts receivable, net Merchandise inventory 18, 000 Accounts payable 9, 200 30, 800 Income taxes payable 40,150 Long-term note payable, secured by 18,500 3, 800 4,400 65,400 Accrued wages payable mortgage on plant assets Prepaid expenses Plant assets, net 2,800 Common stock 151, 300 Retained earnings $ 252, 250 Total liabilities and equity 87, e00 73,150 $ 252, 250 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 453, 600 297,850 155,750 98, 500 4,800 52,450 21,129 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 24 31,321 Requlred: 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 Intermedlate calculations.)
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