Cash 1,500.00 Marketable Securities 2,500.00 Accounts Receivable 15,000.00 Inventory 33,000.00 Toatl Current Assets 52,000.00 Fixed Assets (net) 35,000.00 Total Assets 87,000.00 Liabilities & Stockholders Equity Accounts Payable Notes Payable 12,500.00 12,500.00 Total current liabilities 25,000.00 Long Term Debt 22,000.00 Total Liabilities 47,000.00 Commaon Stock 5,000.00 Contributed Capital Retained Eamings 18,000.00 17,000.00 Total Stockholders equity Total Liabilities & Stockholders equity 40,000.00 87,000.00 Sales 130,000.00 Cost of Sales 103,000.00 Gross Margin 27,000.00 Operating Expenses 16,000.00 11,000.00 Earning before interest and taxes Interest Expense 3,000.00 Earnings before taxes Income Tax 8,000.00 3,000.00 Eamings after taxes 5,000.00 Using the statements provided above... Calculate the following liquidity ratios: Current ratio Quick ratio Calculate the following asset management ratios: Average collection period Inventory turnover Fixed asset turnover Total asset turnover Calculate the following financial leverage ratios Debt to equity ratio Long-term debt to equity Calculate the following profitability ratios: Gross profit margin Net profit margin Return on investment Return on stockholders’ equity

The following ratios are indicators of liquidity ,except_______   Group of answer choices current ratio    asset turnover    accounts receivables turnover     inventory turnover ratio

DuPont system of analysis Use the following financial information for AT&T and Verizon to conduct a DuPont system of analysis for each company. Sales Earnings available for common stockholders Total assets Stockholders' equity a. Which company has the higher net profit margin? Higher asset turnover? b. Which company has the higher ROA? The higher ROE? c. Which company has the higher financial leverage multiplier? a. Net profit margin (Round to three decimal places.) AT&T Net profit margin AT&T $164,000 13,333 403,921 201,934 Verizon Verizon $126,280 13,608 244,280 24,232

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, $52,900; total assets, $219,400; common stock, $86,000; and retained earnings, $31,757.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory. Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $ 14,000 8,200 30,000 38,150 2,600 149,300 $ 242, 250 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 456,600 297,750 158,850 99,000 4,600 55,250 22,257 $32,993 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 18,500 3,600 4,000…