Question

i need help and a expaination please ?

Selected year-end financial statements of Cabot Corporation follow. All sales were on credit: selected balance sheet amounts at December 31, 2016, were inventory, $52.900; total assets. $229.400; common stock, $88,000; and retained earnings, $32,712.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 450,600 Cost of goods sold 297,650 Gross profit 152,950 Operating expenses 99, 100 Interest expense 3,800 Income before taxes 50.050 Income taxes 20, 162 Net income 29,888 16,500 3,200 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash 8,000 Accounts payable Short-term 8,400 Accrued wages payable investments Accounts 31,400 Income taxes payable receivable, net Notes receivable (trade) 3.500 Merchandise 34,150 Long-term note payable, secured by inventory mortgage on plant assets Prepaid expenses 2,650 Common stock Plant assets, net 150,300 Retained earnings Total assets $ 238,400 Total liabilities and equity 3,700 64,400 88,000 62.600 238,400 * These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (l) 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 common stockholders' equity. (Do not round Intermediate calculations.)

Answer 1

en Curent uoH'O : Curent Asseh curent Wabul cuvent Asset - Potou A8 sett - Pined Assett = $ 238,400 - 150.300 $ 88,100 cullent liabiliti'u : $16.500 + $3200 + $ 3700 *$ ,400 aument natio. - 3.76 to 1 $88,100 a 3,400 Ad Terr uoto Current Asset invertoly - Pue poud exer current liabiutiu $88.100-484,150-$2,650 4 28.400 $518, 851,300 28.400 = 2.19 +04 Day's Saley ancollected Average Accounti vecuvable x 265 Ner credit sales $84,900 x 365 450600 = 28.27 days Inventory teenovee cost of Goodi sold_ Arriage inentaly. Aug. inventory & 84,150+ & 62,900 $ 43,525.

$ 297,650 $ 43,525 6.84 time (5) days sales in inventory & 365 Inventory teenovee - 365, 6.84 53.36 day al Debt do equity Ratio - Portal liabilities shau hoden equiry & 84,800 $ 150,600 0.58 to 1 7) Times interest towned a Earnings Before entuelt and fax Potou interest Expense $ 53,850 2 14.17 times $ 3,800 (8 punter margen de Net puofit Revenue $ 29,888 $ 460,600 6.63% 1 Polar Asset teenovee e Net sales Aug. total Apse te Avg. totou Apset - $ 299,400+ $ 238,400 2 $283,900

$ 450,600 $233400 1993 to Releun on totale Assets ? Net income xloo Average tota, Assets 12 48% = $ 29,888_ x100 ? $ 283,900 c) Return on Common shareholders equity ? Net income Common share holder Equity $ 29,888 $ 150, 600 19.85%