Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5)
Fantastic news! We've Found the answer you've been seeking!
Question:
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.)
Transcribed Image Text:
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $209,400; common stock, $86,000; and retained earnings, $44,112.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 $ 450,600 297,550 153,050 98,600 Sales Cost of goods sold Gross profit Operating expenses Interest expense 4,400 Income before taxes 50,050 Income taxes 20,162 Net income $ 29,888 САВОТ СORPORАTION Balance Sheet December 31, 2017 Assets Liabilities and Equity $ 14,000 Accounts payable 9,400 Accrued wages payable 30,200 4,000 $ 17,500 4,400 4,300 Cash Short-term investments Income taxes payable Accounts receivable, net Notes receivable (trade)* Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses Plant assets, net 2,550 Common stock 151,300 Retained earnings $ 251,600 Total liabilities and equity ৪6, 000 74,000 $ 251,600 Total assets *These are short-term notes receivable arising from customer (trade) sales. Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $209,400; common stock, $86,000; and retained earnings, $44,112.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 $ 450,600 297,550 153,050 98,600 Sales Cost of goods sold Gross profit Operating expenses Interest expense 4,400 Income before taxes 50,050 Income taxes 20,162 Net income $ 29,888 САВОТ СORPORАTION Balance Sheet December 31, 2017 Assets Liabilities and Equity $ 14,000 Accounts payable 9,400 Accrued wages payable 30,200 4,000 $ 17,500 4,400 4,300 Cash Short-term investments Income taxes payable Accounts receivable, net Notes receivable (trade)* Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses Plant assets, net 2,550 Common stock 151,300 Retained earnings $ 251,600 Total liabilities and equity ৪6, 000 74,000 $ 251,600 Total assets *These are short-term notes receivable arising from customer (trade) sales.
Expert Answer:
Answer rating: 100% (QA)
Compute the following 1 Currentratio Choose Numerator Choose Denominator Current Ra... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Do not round intermediate calculation; however for display purposes report intermediate steps rounded to four significant figures, Give your final answer(s) so four significant figures. The small...
-
For the beam and loading shown, design the cross section of the beam, knowing that the grade of timber used has an allowable normal stress of 16 MPa. B 90 kN/m 3.2 m A d= mm X
-
A few months after joining university, YOU got a casual job as a finance trainee in a financial firm via Work Integrated Learning which is part of your bachelors degree at Deakin University. You...
-
The inequality describes the range of monthly average temperatures T in degrees Fahrenheit at a certain location. (a) Solve the inequality. (b) If the high and low monthly average temperatures...
-
Consider the history of integration is the Americas. How do MERCOSUR, the Andean Community compare to NAFTA? How are all three similar and what do all three mean regarding integration in the region?
-
FIFO and LIFO Effects You are the vice president of finance of Mickiewicz Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31,...
-
On June 28, 1997, in Las Vegas, heavyweight boxers Mike Tyson and Evander Holyfield met for what proved to be a night to remember. During the third round of the fight, a desperate Tyson illegally bit...
-
Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share)....
-
Prof. Dimitriou developed the following code to evaluate the expressions A(), B() and CO) but it takes too long to compute even for small values of n. A(int n) if (n <0) return 0; if (n
-
A system absorbs 200 J of heat reversibly from a reservoir at 300 K and gives off 100 J reversibly to a reservoir at 200 K as it moves from state A to state B. During this process, the system does 50...
-
Assessment Helen, a regular customer, needs to send money to her grandson's best friend after receiving an emergency call. Their car broke down while traveling across the country. What could you...
-
If you had to pick one mobile affordance that is the most important , which one would it be and why? In your answer, make sure to explain that affordance (based on the reading and lecture) and...
-
Figure 1: Cash schedule for a whole life plan: guaranteed and projected 3. Basic Plan - Illustration Summary SURRENDER VALUE DEATH BENEFIT Guaranteed Non-Guaranteed Non-Guaranteed End of Policy Year...
-
Using the "enterprise method", calculate the value of the entire business. You can assume a 35% tax rate. Hint: you may not required to use all the given items. EBIT Net Income Depreciation Changes...
-
2. Citibikes were introduced in New York City in 2013. At first, they were only south of 59th street in Manhattan, now they are available throughout Man- hattan, and many parts of Brooklyn, Queens,...
-
You purchased 100 shares of stock for a share price of $16.84. You sold the stock two years later for a share price of $18.78. You also received total dividend payments of $0.77 per share. What was...
-
Write MATLAB code to modify the previous gravity calculation examples as follows (see below for original prompt): If the user enters a zero value for mass, an error message will be generated and the...
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
Zander Delivery Service completed the following transactions and events involving the purchase and operation of equipment for its business. 2010 Jan. 1 Paid $58,000 cash plus $4,000 in sales tax for...
-
In January 2011, Solaris Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it...
-
On January 20, 2011, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date...
-
You are provided with the worksheet for Norman Pty Ltd for the year ended 30 June 2019. The adjustments have already been made and the worksheet begins with the adjusted trial balance. Assume all...
-
You are provided with the cost of goods manufactured statement and income statement for Prider Manufacturers Ltd. Required (a) Prepare the closing entries for Prider Manufacturers Ltd. Direct...
-
The listing of the ledger accounts (unadjusted) of Smart Manufacturing Systems Pty Ltd at 30 June 2019 is provided. All ledger balances are normal balances. Additional information relating to the...
Study smarter with the SolutionInn App