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28 Sep 2019
Selected year-end financial statements of Cabot Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2012, were inventory, $51,900; total assets,$179,400; common stock, $105,000; and retained earnings,$52,148.)
CABOT CORPORATION
Income Statement
For Year Ended December 31, 2013 Sales $ 451,600 Costof goods sold 297,150 Gross profit 154,450 Operating expenses 99,300 Interest expense 4,700 Income before taxes 50,450 Income taxes 20,323 Netincome $ 30,127
CABOT CORPORATION
Balance Sheet
December 31, 2013 Assets Liabilities and Equity Cash $ 20,000 Accounts payable $ 15,500 Short-term investments 9,000 Accrued wages payable 3,800 Accounts receivable, net 32,800 Income taxes payable 4,100 Notes receivable (trade)* 4,500 Long-term note payable, secured Merchandise inventory 42,150 by mortgage on plant assets 65,400 Prepaid expenses 3,000 Common stock 105,000 Plant assets, net 147,300 Retained earnings 64,950 Total assets $ 258,750 Total liabilities and equity $ 258,750
* These areshort-term notes receivable arising from customer (trade)sales.
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 interestearned, (8) profit margin ratio, (9) total asset turnover, (10)return on total assets, and (11) return on common stockholders'equity. (Use 365 days a year. Do not round intermediatecalculations.)
Selected year-end financial statements of Cabot Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2012, were inventory, $51,900; total assets,$179,400; common stock, $105,000; and retained earnings,$52,148.)
CABOT CORPORATION Income Statement For Year Ended December 31, 2013 | ||
Sales | $ | 451,600 |
Costof goods sold | 297,150 | |
Gross profit | 154,450 | |
Operating expenses | 99,300 | |
Interest expense | 4,700 | |
Income before taxes | 50,450 | |
Income taxes | 20,323 | |
Netincome | $ | 30,127 |
CABOT CORPORATION Balance Sheet December 31, 2013 | ||||||
Assets | Liabilities and Equity | |||||
Cash | $ | 20,000 | Accounts payable | $ | 15,500 | |
Short-term investments | 9,000 | Accrued wages payable | 3,800 | |||
Accounts receivable, net | 32,800 | Income taxes payable | 4,100 | |||
Notes receivable (trade)* | 4,500 | Long-term note payable, secured | ||||
Merchandise inventory | 42,150 | by mortgage on plant assets | 65,400 | |||
Prepaid expenses | 3,000 | Common stock | 105,000 | |||
Plant assets, net | 147,300 | Retained earnings | 64,950 | |||
Total assets | $ | 258,750 | Total liabilities and equity | $ | 258,750 | |
* These areshort-term notes receivable arising from customer (trade)sales. |
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 interestearned, (8) profit margin ratio, (9) total asset turnover, (10)return on total assets, and (11) return on common stockholders'equity. (Use 365 days a year. Do not round intermediatecalculations.) |
Tod ThielLv2
28 Sep 2019