Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance...
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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, $55,900; total assets, $199,400; common stock, $88,000; and retained earnings, $40,566.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments $ 16,000 Accounts payable $ 16,500 8,800 Accrued wages payable 3,000 Accounts receivable, net Merchandise inventory 31,600 Income taxes payable 4,500 34, 150 Prepaid expenses Plant assets, net 2,900 153,300 Long-term note payable, secured by mortgage on plant assets Common stock 63,400 88,000 Retained earnings 71,350 Total assets $ 246,750 Total liabilities and equity $ 246, 750 CABOT CORPORATION Income Statement 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: $ 453,600 298, 250 155,350 99,600 4,200 51,550 20,766 $ 30,784 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 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Numerator: (2) Numerator: 1 Current Ratio Denominator: Current Ratio Current ratio to 1 Acid-Test Ratio Denominator: Acid-Test Ratio 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, $55,900; total assets, $199,400; common stock, $88,000; and retained earnings, $40,566.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments $ 16,000 Accounts payable $ 16,500 8,800 Accrued wages payable 3,000 Accounts receivable, net Merchandise inventory 31,600 Income taxes payable 4,500 34, 150 Prepaid expenses Plant assets, net 2,900 153,300 Long-term note payable, secured by mortgage on plant assets Common stock 63,400 88,000 Retained earnings 71,350 Total assets $ 246,750 Total liabilities and equity $ 246, 750 CABOT CORPORATION Income Statement 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: $ 453,600 298, 250 155,350 99,600 4,200 51,550 20,766 $ 30,784 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 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Numerator: (2) Numerator: 1 Current Ratio Denominator: Current Ratio Current ratio to 1 Acid-Test Ratio Denominator: Acid-Test Ratio
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