Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit For Current Year Ended December 31 $ 448,600 297,950 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 18,000 Accounts payable 8,400 Accrued wages payable 30,400 Income taxes payable CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 34,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 150,300 Retained earnings $ 244,000 Total liabilities and equity 150,650 98,700 4,200 47,750 19,236 $ 28,514 $ 18,500 4,000 3,200 72,400 81,000 64,900 $ 244,000 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 interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on equity.
Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit For Current Year Ended December 31 $ 448,600 297,950 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 18,000 Accounts payable 8,400 Accrued wages payable 30,400 Income taxes payable CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 34,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 150,300 Retained earnings $ 244,000 Total liabilities and equity 150,650 98,700 4,200 47,750 19,236 $ 28,514 $ 18,500 4,000 3,200 72,400 81,000 64,900 $ 244,000 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 interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on equity.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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