Homework Help is Here – Start Your Trial Now!
Business
Accounting
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, $249,400; common stock, $83,000; and retained earnings, $45,605.) 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 311 Sales $ 449,600 Operating expenses Interest expense Incone before taxes Income tax expense Net income Accounts payable $ 20,000 9,000 Accrued wages payable 33,600 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 153,300 Retained earnings $ 254,800 Total liabilities and equity CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 298,250 151,350 99,300 4,500 47,550 19,155 $ 28,395 $ 18,500 4,600 3,300 71,400 83,000 -74,000 $ 254,000 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inventory. El debito obratio times interest earned (R) profit margin ratio (9) total asset turnover (10) return on total assets, and (1) return

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, $249,400; common stock, $83,000; and retained earnings, $45,605.) 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 311 Sales $ 449,600 Operating expenses Interest expense Incone before taxes Income tax expense Net income Accounts payable $ 20,000 9,000 Accrued wages payable 33,600 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 153,300 Retained earnings $ 254,800 Total liabilities and equity CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 298,250 151,350 99,300 4,500 47,550 19,155 $ 28,395 $ 18,500 4,600 3,300 71,400 83,000 -74,000 $ 254,000 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inventory. El debito obratio times interest earned (R) profit margin ratio (9) total asset turnover (10) return on total assets, and (1) return

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 19BEA
See similar textbooks
icon
Related questions
Question

Godo

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, $249,400; common stock, $83,000; and retained earnings, $45,605.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses. Plant assets, net Total assets $ 20,000 9,000 Operating expenses Interest expense Income before taxes Income tax expense Net income. CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 449,600 298,250 Cost of goods sold Gross profit 151,350 99,300 4,500 47,550 19,155 $ 28,395 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable 33,600 Incone taxes payable 36,150 Long-tern note payable, secured by mortgage on plant assets Common stock 2,750 153,300 Retained earnings $254,800 Total liabilities and equity $ 18,500 4,600 3,300 71,400 83,000 -74,000 $254,000. 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. Note: 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, $49,900; total assets, $249,400; common stock, $83,000; and retained earnings, $45,605.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses. Plant assets, net Total assets $ 20,000 9,000 Operating expenses Interest expense Income before taxes Income tax expense Net income. CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 449,600 298,250 Cost of goods sold Gross profit 151,350 99,300 4,500 47,550 19,155 $ 28,395 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable 33,600 Incone taxes payable 36,150 Long-tern note payable, secured by mortgage on plant assets Common stock 2,750 153,300 Retained earnings $254,800 Total liabilities and equity $ 18,500 4,600 3,300 71,400 83,000 -74,000 $254,000. 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. Note: Do not round intermediate calculations.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS