Saved CIAL STATEMENT ANALYSIS Problem 13-4A Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet a at December 31 of the prior year were inventory, $49,900; total assets, $239,400; common stock. $84,000; and retained earnir $45,515.) eBook CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales 451,600 Cost of goods sold 297,450 Gross profit 154. 150 Operating expenses 98,700 Interest expense 4.400 Income before taxes 51,050 Income tax expense 20,565 Net income 30,485 Print References $ Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 22.000 Accounts payable 9,000 Accrued wages payable 31, 200 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant asseta 2,550 Common stock 148,300 Retained earnings $ 249,200 Total liabilities and equity 16,500 3.400 2,900 66,400 Prepaid expenses Plant annets, net Total assets B4,000 76,000 $ 249,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) day sales uncollected. (4) inventory turnover (5) days' sales in Inventor (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) retur on common stockholders' equity. (Do not round intermediate calculations.) Ouest-10-equity Talu, U S Welleucu, UJ PIUIL TUIGUI IULU, LULUI UJU on common stockholders' equity. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. ook Req 1 and 2 Re R eq 4 Reg 5 Req6 R eq 7 Req8 Req 9 IR Compute the current ratio and acid-test ratio. Print Current Ratio Choose Denominator: Current liabilities Choose Numerator: Current assets arences Current Ratio Current ratio 4.4 to 1 $ 99,900 22,800 - Choose Numerator: Quick assets Acid-Test Ratio Choose Denominator: Current liabilities $ Acid-Test Ratio Acid-Test Ratio 2.7 to 1 $ 61,200 22.800 Reg 3 > on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Reg 5 Reg 6 Req 7 Req8 Req 9 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: x Days Choose Numerator: = Days Sales Uncollected Accounts Receivable, net (including current notes receivable from customers) Net sales x 365 - Days sales uncollected 31,200 $ 451,600 365 25.2 days Total assess $ 249,200 Total liabilities and equity $ 249,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover. (5) days (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio (9) total asset turnover (10) return on total as on common stockholders' equity. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. SARRERS Y Rg 5 Req 1 and 2 Reg 3 Req 4 Req 6 Reg 7 Req8 Reg 9 Rego Req 10 Req 11 Reg 5 Compute the days' sales in inventory. (5) Choose Numerator: Merchandise inventory $ Days! Sales in Inventory Choose Denominator: Cost of goods sold x $ 287,450 Days 365 365 - - - Days' Sales in Inventory Days' sales in inventory 45.9 days 36,150 ( Reg 4 Rege > Prev 1 of 3 Next > Prepaid expenses Plant assets, net Total assets mortgage on plant assets 2,550 Common stock 148,300 Retained earnings $ 249,200 Total liabilities and equity 84,000 76,000 $ 249,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in Inve (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req9 Req 10 Req 11 Compute the debt-to-equity ratio. Choose Numerator: Total liabilities 1 7 Debt-to-Equity Ratio Choose Denominator: Total equity $ 160,000 Debt-to-Equity Ratio Debt-to-equity ratio 0.56 to 1 89,200 Prev 1 of 3 !!! Next > Prepaid expenses Plant assets, net Total assets 2,550 Common stock 148,300 Retained earnings $ 249,200 ilities and equity 84,000 76,000 $ 249,200 equired: ompute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover, (5) days' sales debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, a n common stockholders' equity. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg Reg 5 Reg 7 Reg 9 Req 10 Req 11 Compute the times interest earned. (7) Interest Earned Choose Numerator - - Income before tax Interest expense Choose Denominator: Interest expense 4,400 1 Times Interest Earned Times interest earned 12.6 times 51,050 Req8 > Accounts receivable, net Merchandise inventory 2,900 66,400 tasets Prepaid expenses Plant assets, net Total assets 31,200 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 148,300 Retained earnings $ 249,200 Total liabilities and equity 84,000 76,000 $ 249,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, a on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Reg 5 Reg 6 Reg 7 Req? Req8 Rea Bill Reg 9 Req 10 Req 11 Compute the profit margin ratio. Choose Numerator: 7 Profit Margin Ratio Choose Denominator: Net sales 451,800 Profit margin ratio Profit margin ratio Net Income 30,485 Reg D Accounts receivable, net Merchandise inventory 2,900 66,400 Prepaid expenses Plant assets, net Total assets 31,200 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 148,300 Retained earnings $ 249,200 Total liabilities and equity 84,000 76,000 $ 249,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sale (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Req 7 Req8 Rea 9 Req 10 Req 11 Compute the total asset turnover. - Choose Numerator: Net sales Total Asset Turnover 1 Choose Denominator: 1 Average total assets / $ 244,300 Total Asset Turnover Total asset turnover 1.8 times $ 451,600 - ( Req8 Req 10 > Nccounci FUCOVADL net Merchandise inventory 66,400 Prepaid expenses Plant assets, net Total assets 31.200 Income taxes payani 36,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 148,300 Retained earnings $ 249,200 Total liabilities and equity 84,000 76,000 $ 249,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover. (5) days' sales (6) debt-to-equity ratio, 7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, on common stockholders' equity. (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 Reg 7 Reg 8 Rego Req 9 Rege Reg 10 Req 10 Req 11 Reg 11 Compute the return on total assets. (10) - Choose Numerator: Net income Return on Total Assets Choose Denominator: Average total assets S | |244,300 Return on Total Assets Return on total assets 9 18 30,485 485 12.5% Reg 11 > Accounts receivable, net Merchandise inventory 2,900 66,400 Prepaid expenses Plant assets, net Total assets 31,200 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 148,300 Retained earnings $ 249,200 Total liabilities and equity 84,000 76,000 $ 249,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio. (3) days' sales uncollected. (4) Inventory turnover (5) days' sales In Inventory 16) 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.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Req7 Reg 8 Req 9 Reg 10 Regr11 Reg 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity Average common stockholders' equity - Return on common stockholders' equity 144,750 - 21.1/5 Choose Numerator: - Preferred dividends 30,485 - $ Net Income s ( Bag 10 Prev 1 of 3 Next >