Question: Selected current year - end financial statements o f Cabot Corporation follow. ( A l l sales were o n credit; selected balance sheet amounts

Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748.)
CABOT CORPORATIONBalance SheetDecember 31of current yearAssets Liabilities and Equity Cash$ 10,000Accounts payable$ 17,500Short-term investments8,400Accrued wages payable3,200Accounts receivable, net33,700Income taxes payable3,300Merchandise inventory32,150Long-term note payable, secured by mortgage on plant assets63,400Prepaid expenses2,650Common stock90,000Plant assets, net153,300Retained earnings62,800Total assets$ 240,200Total liabilities and equity$ 240,200
CABOT CORPORATIONIncome StatementFor Current Year Ended December 31Sales$ 448,600Cost of goods sold297,250Gross profit151,350Operating expenses98,600Interest expense4,100Income before taxes48,650Income tax expense19,598Net income$ 29,052
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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!