CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 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 common stockholders' equity. (Do not round intermediate calculations.)
CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 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 common stockholders' equity. (Do not round intermediate calculations.)
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 6DQ
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CABOT CORPORATION Balance Sheet December 31 |
|||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 10,000 | Accounts payable | $ | 19,500 | ||
Short-term investments | 8,000 | Accrued wages payable | 3,400 | ||||
33,600 | Income taxes payable | 2,900 | |||||
Merchandise inventory | 42,150 | Long-term note payable, secured by mortgage on plant assets | 66,400 | ||||
Prepaid expenses | 2,800 | Common stock | 83,000 | ||||
Plant assets, net | 147,300 | 68,650 | |||||
Total assets | $ | 243,850 | Total liabilities and equity | $ | 243,850 | ||
Required:
Compute the following: (1)
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