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....
-
Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were 3/5 completed in the Blending Department. During June, 55,000 units entered the Blending Department from the...
-
Explain the purpose of the statement of cash flows.
-
In Exercise 11, compare your answer to part (a) with your answer to part (b). How do outliers affect the range of a data set? Data from Exercises 11 The altitudes (in kilometers) of atmosphere at...
-
David Rodriguez owns a chain of travel goods stores, Rodriguez Travel Goods. Last year, his sales staff sold 25,000 suitcases at an average sales price of $150. Variable expenses were 60% of sales...
-
A glass window is 2.0 m wide and 1.5 m high and 7.5 mm thick. The temperature of the inner surface is 18 C and that of the outer surface is 11 C. (a) Find the rate of heat flow through the window....
-
1. What is the cost of debt for Sunrise Bakery? 2. What is their cost of equity? 3. What is the WACC? 4. Which cost of capital should be used to evaluate the feasibility of the oven purchase? 5....
-
Peace Inc. is a very small-scale producer of holiday season paper napkins located in central Texas, operating primarily around the Holiday season. Peace's entire annual production takes place over a...
-
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 37,000 direct labor-hours would be...
-
Dolson Appliances makes coffee machines for offices and homes. For next year, the production budget is 141,000 units. Beginning inventories will be 18,000 units and the desired ending inventory will...
-
Gross charges for hospital services, all charged to accounts and notes receivable, were as follows: Patient service revenue $1,668,700 The hospital cafeteria and gift shop had cash sales of $297,200....
-
If the seat is not available or DOES NOT EXIST, display a warning message. Instruction: Using Java programming language, create a program that will create a simple Reservation system using classes,...
-
Weber Company purchased a mining site for $689,092 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 82,882 tons will be recovered. The estimated...
-
After a review of its workforce, DEI, Inc. finds that 40% of its supervisors are black, 35% are white, and 25% are Hispanic. As such, they decide to implement a promotion and hiring policy that...
-
Write a paper about medication error system 2016.
-
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...
-
Apple stock is selling for \($120\) per share. Call options with a \($117\) exercise price are priced at \($12.\) What is the intrinsic value of the option, and what is the time value?
-
Ibrahim bought 200 shares of a stock trading in the Abu Dhabi Securities Exchange at AED 12 (United Arab Emirates dirham) per share. Over time, the price of the stock increased to AED 18 per share....
-
Twitter is trading at \($34.50.\) Call options with a strike price of \($35\) are priced at \($2.30\) . What is the intrinsic value of the option, and what is the time value?
Study smarter with the SolutionInn App