Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
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, $48,900; total assets, $169,400; common stock, $90,000; and retained earnings, $40,989.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 20,000 Accounts payable 8,200 Accrued wages payable 32,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 153,300 Retained earnings $ 249,150 Total liabilities and equity For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 453,600 297,250 156,350 99,100 4,900 52,350 21,089 $ 31,261 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 $ 16,500 4,200 2,800 63,400 90,000 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. 72,250 (1) $ 249,150 Numerator: 1 Current Ratio Denominator: = Current Ratio Current ratio to 1 (2) Numerator: 1 1 Acid-Test Ratio Denominator. Acid-Test Ratio = Acid-Test Ratio = to 1 Req 1 and 2 Req 3 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in invent Compute the days' sales uncollected. (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) ret on equity. Note: Do not round intermediate calculations. Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 (3) Days' Sales Uncollected Numerator: Denominator: Complete this question by entering your answers in the tabs below. 1 x Days = Days Sales Uncollected = Days sales uncollected days Req 1 and 2 Req 1 and 2 Req 3 Req 3 Req 4 Req 5 Req 4 Req 5 Req 6 Req 6 Req 7 Req 8 Req 7 Req 8 Req 9 Req 10 Req 9 Req 11 Req 10 Req 11 Compute the inventory turnover. Compute the debt-to-equity ratio. (4) (6) Numerator: 1 Inventory Turnover Denominator: = Inventory Turnover = Inventory turnover = times Numerator: 1 1 Debt-to-Equity Ratio Denominator: = = Debt-to-Equity Ratio Debt-to-equity ratio = to 1 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 1 and 2 Req 8 Req 9 Req 3 Req 10 Req 4 Req 5 Req 11 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. Compute the days' sales in inventory. (7) (5) Numerator: Days' Sales in Inventory Denominator: Days x Days' Sales in Inventory Days' sales in inventory days Times Interest Earned Numerator: Denominator: 1 1 Times Interest Earned = Times interest earned = times Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Compute the profit margin ratio. Req 7 Req 8 Req 9 Req 10 Req 11 (6) Profit Margin Ratio Numerator: 1 Denominator: E Profit margin ratio 1 = Profit margin ratio = % Compute the total asset turnover. (9) Numerator: 1 Total Asset Turnover Denominator: Total Asset Turnover = Total asset turnover times Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Req 1 and 2 Req 3 Compute the return on total assets. Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 (10) Numerator: 1 Return on Total Assets Denominator: Return on Total Assets = Return on total assets = % Compute the return on equity. (11) Return on Equity Numerator: Denominator 1 I Return On Equity = Return on equity = % 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, $48,900; total assets, $169,400; common stock, $90,000; and retained earnings, $40,989.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 20,000 Accounts payable 8,200 Accrued wages payable 32,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 153,300 Retained earnings $ 249,150 Total liabilities and equity For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 453,600 297,250 156,350 99,100 4,900 52,350 21,089 $ 31,261 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 $ 16,500 4,200 2,800 63,400 90,000 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. 72,250 (1) $ 249,150 Numerator: 1 Current Ratio Denominator: = Current Ratio Current ratio to 1 (2) Numerator: 1 1 Acid-Test Ratio Denominator. Acid-Test Ratio = Acid-Test Ratio = to 1 Req 1 and 2 Req 3 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in invent Compute the days' sales uncollected. (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) ret on equity. Note: Do not round intermediate calculations. Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 (3) Days' Sales Uncollected Numerator: Denominator: Complete this question by entering your answers in the tabs below. 1 x Days = Days Sales Uncollected = Days sales uncollected days Req 1 and 2 Req 1 and 2 Req 3 Req 3 Req 4 Req 5 Req 4 Req 5 Req 6 Req 6 Req 7 Req 8 Req 7 Req 8 Req 9 Req 10 Req 9 Req 11 Req 10 Req 11 Compute the inventory turnover. Compute the debt-to-equity ratio. (4) (6) Numerator: 1 Inventory Turnover Denominator: = Inventory Turnover = Inventory turnover = times Numerator: 1 1 Debt-to-Equity Ratio Denominator: = = Debt-to-Equity Ratio Debt-to-equity ratio = to 1 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 1 and 2 Req 8 Req 9 Req 3 Req 10 Req 4 Req 5 Req 11 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. Compute the days' sales in inventory. (7) (5) Numerator: Days' Sales in Inventory Denominator: Days x Days' Sales in Inventory Days' sales in inventory days Times Interest Earned Numerator: Denominator: 1 1 Times Interest Earned = Times interest earned = times Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Compute the profit margin ratio. Req 7 Req 8 Req 9 Req 10 Req 11 (6) Profit Margin Ratio Numerator: 1 Denominator: E Profit margin ratio 1 = Profit margin ratio = % Compute the total asset turnover. (9) Numerator: 1 Total Asset Turnover Denominator: Total Asset Turnover = Total asset turnover times Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Req 1 and 2 Req 3 Compute the return on total assets. Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 (10) Numerator: 1 Return on Total Assets Denominator: Return on Total Assets = Return on total assets = % Compute the return on equity. (11) Return on Equity Numerator: Denominator 1 I Return On Equity = Return on equity = %
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Audrey has recently purchased a home with a $325,000 mortgage. She opted for monthly payments, a term of 5 years at a rate of 3.2%, and an amortization period of 25 years. Had Audrey chosen, instead,...
-
Is it possible for the true cost of living to rise for one consumer and fall for another in response to the same change in prices? If so, explain why, and give an example using graphs. If not,...
-
An Acapulco cliff diver in (m = 70.0 kg) jumps 30.0 meters from the top of the cliff toward the ocean below. However, in a freak accident, half-way down 8.00 meters from his launch point, he crashes...
-
A flat block is pulled along a horizontal flat surface by a horizontal rope perpendicular to one of the sides. The block measures \(1.0 \mathrm{~m} \times 1.0 \mathrm{~m}\), has a mass of \(100...
-
A company retired $60 million of its 6% bonds at 102 ($61.2 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $2 million. Prepare the journal entry to...
-
The world long jump record is 9.95 m (Mike Powell, USA, 1991).Treated as a projectile, what is the maximum range, in meters, obtainable by a person if he or she has a take-off speed of 8.9 m/s?...
-
Two investors, A and B, each with a mean-variance objective, choose their portfolios from among 20 risky assets. They agree about the values of the means, variances and covariances. No risk-free...
-
A bond with 10 years to maturity and a coupon rate of 11% has a par, or face, value of $20,000. Interest is paid annually. If you require a return of 17% on this bond, what is the price of the bond?...
-
Solomon Corporation's computer services department assists two operating departments in using the company's information system effectively. The annual cost of computer services is $573,400. The...
-
A cylindrical soil sample 80mm in diameter by 160mm high weighed 1,450g in its natural state and 1284.32 after drying. Assuming a soil particle density of 2.68g/cm, calculate: The voids ratio to 3...
-
Hokies uses the following accounts: Accounts Payable Cash Prepaid Rent Common Stock Salaries Payable Equipment Supplies Rent Expense Notes Payable Salaries Expense Accounts Receivable Utilities...
-
At what per annum rate must $260 be compounded daily for it to grow to $561 in 12 years? (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) (Assume 365 days...
-
What is the exponentially smoothed forecast for week #7 if ? = 0.9 is used, and the forecast for week #6 was 34? Use the information from Table 1. WEEK No. Special Pizzas 130 245 333 436 535 640
-
The following items were displayed in the statement of affairs for Lubbock Company: Fully secured liabilities ......... $90,000 Partially secured liabilities ....... 12,000 Unsecured liabilities...
-
(a) Consider the flash separation process shown in Figure 7.1. If using ASPEN PLUS, solve all three cases using the MIXER, FLASH2, FSPLIT, and PUMP modules and the RK-SOAVE option set for...
-
As discussed in Example 6.7, toluene \(\left(\mathrm{C}_{7} \mathrm{H}_{8} ight)\) is to be converted thermally to benzene \(\left(\mathrm{C}_{6} \mathrm{H}_{6} ight)\) in a hydrodealkylation...
-
As discussed in Example 6.7, the following stream at \(100^{\circ} \mathrm{F}\) and 484 psia is to be separated by two distillation columns into the Products \(1-3\) in the following table. Two...
Study smarter with the SolutionInn App