Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet...

50.1K

Verified Solution

Question

Accounting

Selected year-end financial statements of Cabot Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2016, were inventory, $54,900; total assets,$169,400; common stock, $87,000; and retained earnings,$35,579.)

CABOT CORPORATION
Income Statement
For Year Ended December 31, 2017
Sales$450,600
Cost of goods sold298,150
Gross profit152,450
Operating expenses98,700
Interest expense4,900
Income before taxes48,850
Income taxes19,679
Net income$29,171
CABOT CORPORATION
Balance Sheet
December 31, 2017
AssetsLiabilities and Equity
Cash$8,000Accounts payable$17,500
Short-term investments9,200Accrued wages payable3,600
Accounts receivable, net31,400Income taxes payable3,400
Notes receivable (trade)*7,500
Merchandise inventory32,150Long-term note payable, secured by mortgage on plantassets62,400
Prepaid expenses3,100Common stock87,000
Plant assets, net147,300Retained earnings64,750
Total assets$238,650Total liabilities and equity$238,650


* These are short-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 ininventory, (6) debt-to-equity ratio, (7) times interest earned, (8)profit margin ratio, (9) total asset turnover, (10) return on totalassets, and (11) return on common stockholders' equity. (Donot round intermediate calculations.)

Answer & Explanation Solved by verified expert
4.4 Ratings (889 Votes)
Answer 1 Current Assets Total Assets Plant Assets net Current Assets 238650 147300 Current Assets 91350 Current Liabilities Accounts Payable Accrued Wages Payable Income Taxes Payable Current Liabilities 17500 3600 3400 Current    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students