Sorry for the question being long but I need help... thanks Selected current year-end financial statements of
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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. $53,900; total assets, $229,400; common stock, $80,000; and retained earnings. $38,652.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet: December 31 of current year Liabilities and Equity $12,000 Accounts payable $16,500 9,000 Accrued wages payable 31,800 Income taxes payable 4,600 4,000 36, 150 Long-term note payable, secured by mortgage on plant assets 2,700 Common stock 67,400 80,000 147,300 Retained earnings 66,450 $238,950 Total Liabilities and equity $238,950 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 298,050 Gross profit 150,550 Operating expenses 99,300 Interest expense 4,700 Income before taxes 46,550 Income tax expense 18,752 $27,798 Net income 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. 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 Req 9 Reg 10. Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Numerator: ' Denominator: Current Ratio Current ratio = to 1 (2) Acid-Test Ratio Numerator: 1 Denominator: Acid-Test Ratio = Acid-Test Ratio 1 = to 1 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. $53,900; total assets, $229,400; common stock, $80,000; and retained earnings. $38,652.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet: December 31 of current year Liabilities and Equity $12,000 Accounts payable $16,500 9,000 Accrued wages payable 31,800 Income taxes payable 4,600 4,000 36, 150 Long-term note payable, secured by mortgage on plant assets 2,700 Common stock 67,400 80,000 147,300 Retained earnings 66,450 $238,950 Total Liabilities and equity $238,950 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 298,050 Gross profit 150,550 Operating expenses 99,300 Interest expense 4,700 Income before taxes 46,550 Income tax expense 18,752 $27,798 Net income 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. 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 Req 9 Reg 10. Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Numerator: ' Denominator: Current Ratio Current ratio = to 1 (2) Acid-Test Ratio Numerator: 1 Denominator: Acid-Test Ratio = Acid-Test Ratio 1 = to 1
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