80.2K

Verified Solution

Link Copied!

please complete all 11 required steps

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. $219,400, common stock, $86,000, and retained earnings. $44.718.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,450 Gross profit 155, 158 Operating expenses 98,800 Interest expense 4,300 Income before taxes 52,850 Income tax expense 20,968 Net income $ 31,082 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 18,000 Accounts payable 8,600 Accrued wages payable 31,800 Incone taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 3,150 Common stock 150,300 Retained earnings $ 250,000 Total liabilities and equity 17,500 3,800 3,500 63,400 Prepaid expenses Plant assets, net Total assets 86,000 75,800 $ 250,000 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Req 7 Req B Req 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: 1 Choose Denominator: Current Ratio Current ratio 1 1 to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 1 1 to 1 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 intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Req8 Req 9 Req 10 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: X Days Choose Numerator: Days Sales Uncollected Days sales uncollected 1 X 1 days 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. (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 intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Real Reg 5 Reg 6 Reg 7 Req 8 Reg 9 Req 10 Reg 11 Compute the inventory turnover. Reg 4 (4) Inventory Turnover Choose Denominator: Choose Numerator: 1 1 Inventory Turnover Inventory turnover times 1

Answer & Explanation Solved by verified expert

See Answer