Question

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

0 0
Add a comment Improve this question Transcribed image text
Answer #1
RATIOS Calculation Ratio
1 Current ratio [Current assets/Current liabilities] (16000+8000+30200+40150+2850)/(18500+3800+3100) 3.83
2 Acid test ratio [(Cash+short term investments+AR)/Current liabilities] (16000+8000+30200)/(18500+3800+3100) 2.13
3 Days' sales uncollected [AR*365/Sales] (30200*365/449600) 24.52
4 Inventory turnover [COGS/Average inventory] [298050/((48900+40150)/2)] 6.69
5 Days' sales in inventory [Inventory*365/COGS] (40150*365/298050) 49.17
6 Debt to equity ratio [Total liabilities/Stockholders' equity] (18500+3800+3100+69400)/(86000+68700) 61.28%
7 Times interest earned [Operating profit/Interest expense] [(151550-98900)/4500] 11.70
8 Profit margin ratio [Net income/Sales] (28753/449600) 6.40%
9 Total asset turnover [Sales/Average total assets] [449600/((249500+199400)/2)] 2.00
10 Return on total assets [Net income/Average total assets] [28753/((249500+199400)/2)] 12.81%
11 Return on common stockholders' equity [Net income/Average common stockholders' equity] [28753/((86000+68700+86000+39947)/2) 20.49%
Add a comment
Know the answer?
Add Answer to:
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet...

    Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total assets, $229,400; common stock, $86,000; and retained earnings, $36,336.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $449,600 Cost of goods sold 298,450 Gross profit 151,150 Operating expenses 98,500 Interest expense 4,900 Income before taxes 47,750 Income taxes 19,236 Net income $28,514 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and...

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

    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, $53,900; total assets, $209,400; common stock, $86,000; and retained earnings, $28,689.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 456,600 Cost of goods sold 297,450 Gross profit 159,150 Operating expenses 98,800 Interest expense 4,400 Income before taxes 55,950 Income tax expense 22,539 Net income $ 33,411 CABOT CORPORATION Balance...

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

    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, $54,900; total assets, $259,400; common stock, $81,000; and retained earnings, $34,712.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 297,850 Gross profit 156, 750 Operating expenses 99,100 Interest expense 4,000 Income before taxes 53,650 Income tax expense 21,612 Net income 32,038 $ Assets Cash...

  • Selected year end financial Statements of Cabot Corporation follow. (All sales were on credit, selected balance...

    Selected year end financial Statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016 were inventory. S47.900; total assets, $259.400: common stock. $89.000, and retained earnings $34455 CABOT CORPORATION Income Statement To Year Ended December 31, 2017 Sales $ 454,600 cost of goods sold 297,950 Gross profit 156,65e Operating expenses 98,700 Interest expense 4.700 Income before taxes 53,250 Income taxes 21,451 Net income 31,799 5 $ CABOT CORPORATION Balance Sheet December 31,...

  • Selected year end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance...

    Selected year end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016, were inventory. $47,900: total assets, $259,400, common stock, $89,000, and retained earnings. $34,451) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 454,600 Cost of goods sold 297,950 Gross profit 156,650 Operating expenses 98,700 Interest expense 4,700 Income before taxes 53,250 Income taxes 21,451 llet income $ 31,799 Assets Cash Short-term investments Accounts receivable, net...

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

    Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $51,900; total assets, $199,400; common stock, $89,000; and retained earnings, $29,269.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 453,600 Cost of goods sold 297,250 Gross profit 156, 350 Operating expenses 99,100 Interest expense 4,700 Income before taxes 52,550 Income taxes 21,169 Net income $ 31,381 Assets Cash $ CABOT CORPORATION Balance Sheet...

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

    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, $54,900; total assets, $229,400; common stock, $89,000; and retained earnings, $35,439.) Sales CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 452,600 Cost of goods sold 297, 450 Gross profit 155, 150 Operating expenses 98,700 Interest expense 4,100 Income before taxes 52, 350 Income tax expense 21,089 Net income 31, 261...

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

    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, $46,900; total assets, $219,400; common stock, $81,000; and retained earnings, $38,566.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 298,450 Gross profit 152,150 Operating expenses 99,500 Interest expense 4,700 Income before taxes 47,950 Income tax expense 19,316 Net income $ 28,634 CABOT CORPORATION Balance...

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

    Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $48,900; total assets, $199,400; common stock, $82,000; and retained earnings, $33,888.) CABOT CORPORATION Income Statement For Year Ended December 31, 2018 Sales $ 450,600 Cost of goods sold 298,050 Gross profit 152,550 Operating expenses 99,300 Interest expense 4,500 Income before taxes 48,750 Income tax expense 19,638 Net income $ 29,112 CABOT CORPORATION Balance Sheet December 31, 2018...

  • pls help? Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit,...

    pls help? 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, $53,900, total assets, $239,400, common stock, $86,000, and retained earnings. $43,018.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $452,600 Cost of goods sold 297,750 Gross profit 154,850 Operating expenses 98,500 Interest expense 4,300 Income before taxes 52,050 Income tax expense 20,968 Net income 31.082 Assets Cash Short-term...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT