Problem 13-4A (Algo) Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 13-4A (Algo) Calculating financial statement ratios LO P3 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, $90,000; and retained earnings. $39,398) Assets Cash Short-term investments Accounts receivable, net i Merchandise Inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit CABOT CORPORATION Incone Statement For Current Year Ended December 31 Operating expenses Interest expense Incose before taxes Income tax expense Net Income $ 22,000 8,400 34,000 Required: 40,150 2,650 149, 300 $ 256,500 $453,600 297,950 155,650 98,800 4,600 $2,250 21,048 $ 31,202 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 18,500 4,200 3,800 69,400 90,000 70,600 $ 256,500 - 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.) Complete this question by entering your answers in the tabs below. Problem 13-4A (Algo) Calculating financial statement ratios LO P3 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, $90,000; and retained earnings. $39,398) Assets Cash Short-term investments Accounts receivable, net i Merchandise Inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit CABOT CORPORATION Incone Statement For Current Year Ended December 31 Operating expenses Interest expense Incose before taxes Income tax expense Net Income $ 22,000 8,400 34,000 Required: 40,150 2,650 149, 300 $ 256,500 $453,600 297,950 155,650 98,800 4,600 $2,250 21,048 $ 31,202 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 18,500 4,200 3,800 69,400 90,000 70,600 $ 256,500 - 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.) Complete this question by entering your answers in the tabs below.
Expert Answer:
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
Selected year- end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $ 48,900; total assets, $ 189,400;...
-
The Braun Company at December 31 has the following account balances. Instructions Calculate how much cash each partner will receive on the liquidation of the partnership under each situation assuming...
-
Beginning accounts receivable were $10,000. All sales were on account and totaled $700,000. Cash collected from customers totaled $650,000. Required: Calculate the ending accounts receivable balance.
-
How well employees modify their thoughts and behavior to align with and support a new or changing environment is known as Multiple Choice proactive task performance. proficient task performance....
-
Indicate whether each of the following transactions affects an operating activity, an investing activity, a financing activity, or a non-cash investing and financingactivity. a. Cash 61,000 Common...
-
A car pitches down in front when the brakes are applied sharply. Explain this observation in terms of torques.
-
Investigate a California case in which a stakeholders right to interpleader was revoked by the court. Under what basis did the court deny the interpleader action?
-
Hammer Orthopedic Corporation periodically invests large sums in marketable equity securities. The investment policy is established by the investment committee of the board of directors and the...
-
Apple is planning to incorporate new software for the price of $ 5 0 0 0 0 0 today in order to produce a new line of the iPod. The new iPod will be ready for sale in 1 year. If the new software will...
-
In determining automobile mileage ratings, it was found that the mpg in the city for a certain model is normally distributed, with a mean of 24 mpg and a standard deviation of 1.0 mpg. Suppose that...
-
What is the total hourly ownership cost? Assumptions: Actual cost (delivered) - $75,000 Horsepower rating-150 hp (110 kw) Cost of tires - $7,500 Salvage or scrap value - 3% Useful life - 7 years or...
-
Consider the following C++ code sequence void shift2 (int & A [10], int k)// k size of the array { A [0]; int sl A [1]; www for (int i = 0; i
-
First, review the Week 1 topics located in 1.1, 1.2, 1.3, and 1.4 and answer the following questions. You are a new business intelligence analyst for your organization in response to the marketing...
-
Let's solve the exponential equation 2e* = 30. (a) First, we isolate ex to get the equivalent equation (b) Next, we take In of each side to get the equivalent equation (c) Now we use a calculator to...
-
Total nonfarm payroll employment increased by 187,000 in August, and the unemployment rate rose to 3.8 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in...
-
For this week's discussion question, assume you are a business analyst for an ocean/rail shipping container manufacturer that sells products in over 70 countries. Obviously, the forecast for...
-
The formula contained in the yellow highlighted cell ( I 3 9 ) is = _ _ _ ( _ _ _ , I 9 , I 2 4 ) . This formula can be copied over to the entire live scenario section without any manual...
-
Describe the Operations (+,,*,/) that can cause negligible addition (NA), error magnification (EM), or subtractive cancellation (SC) in calculating ?((x^2)+1) - x . Give the range of where they might...
-
Refer to the information in Exercise 9- 6 to complete the following requirements. a. On February 1 of the next period, the company determined that $ 6,800 in customer accounts is uncollectible;...
-
On August 2, 2013, Jun Co. receives a $ 6,000, 90-day, 12% note from customer Ryan Albany as payment on his $ 6,000 account. (1) Compute the maturity date for this note. (2) Prepare Juns journal...
-
The production department in a process manufacturing system completed 80,000 units of product and transferred them to finished goods during a recent period. Of these units, 24,000 were in process at...
-
A system, consisting of \(2 \mathrm{~mol}\) of \(\mathrm{N}_{2}, 5 \mathrm{~mol}\) of \(\mathrm{H}_{2}\) and \(2 \mathrm{~mol}\) of \(\mathrm{NH}_{3}\) initially, is undergoing the following...
-
A thermodynamic system (a) Is a definite quantity of matter (b) Is surrounded by a boundary (c) Can exchange energy with its surroundings (d) All of these.
-
The study of thermodynamics enables us to understand (a) Whether the transformation of energy is feasible or not (b) To what extent the transformation will take place (c) In which direction the...
Study smarter with the SolutionInn App