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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Need all 11 required, please and thank you ! very important

Transcribed Image Text:**Selected Current Year-End Financial Statements of Cabot Corporation**
The following is an overview of Cabot Corporation's financial statements for the current year ending December 31. All sales were made on credit.
### Balance Sheet
**Cabot Corporation**
*Balance Sheet*
*December 31 of current year*
| **Assets** | **Liabilities and Equity** |
|-------------------------------|---------------------------------------------------------------|
| Cash | $8,000 | Accounts payable | $17,500 |
| Short-term investments | $8,800 | Accrued wages payable | $3,400 |
| Accounts receivable, net | $31,200 | Income taxes payable | $4,400 |
| Merchandise inventory | $32,150 | Long-term note payable, secured by mortgage on plant assets | $65,400 |
| Prepaid expenses | $3,100 | Common stock | $87,000 |
| Plant assets, net | $152,300 | Retained earnings | $57,850 |
| **Total assets** | **$235,550** | **Total liabilities and equity** | **$235,550** |
### Income Statement
**Cabot Corporation**
*Income Statement*
*For Current Year Ended December 31*
| **Description** | **Amount** |
|-------------------------|-------------|
| Sales | $455,600 |
| Cost of goods sold | $297,050 |
| Gross profit | $158,550 |
| Operating expenses | $99,000 |
| Interest expense | $4,900 |
| Income before taxes | $54,650 |
| Income tax expense | $22,015 |
| **Net income** | **$32,635** |
### Additional Context
- **Prior Year Information**: As of December 31 of the previous year, selected balance sheet figures included:
- **Inventory**: $48,900
- **Total assets**: $229,400
- **Common stock**: $87,000
- **Retained earnings**: $25,215
These financial statements provide a snapshot of Cabot Corporation's financial health, reflecting asset management, liabilities, equity, and profitability for the specified period.
![**Educational Website Content: Financial Ratio Analysis**
**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
11. Return on equity
**Note:** Do not round intermediate calculations.
---
**Instructions:**
Complete these calculations by entering your answers in the tabs below.
Tabs available: Req 1 and 2, Req 3, Req 4, Req 5, Req 6, Req 7, Req 8, Req 9, Req 10, Req 11
---
### Compute the Current Ratio and Acid-Test Ratio
**(1) Current Ratio**
- **Numerator:**
- Current Assets / Current Liabilities
- **Denominator:**
- Equals the Current Ratio
- The result will be formatted as "Current Ratio = X to 1"
---
**(2) Acid-Test Ratio**
- **Numerator:**
- (Current Assets - Inventory) / Current Liabilities
- **Denominator:**
- Equals the Acid-Test Ratio
- The result will be formatted as "Acid-Test Ratio = X to 1"
---
Use the navigation buttons to move between calculation tabs:
[Req 1 and 2] [Req 3]
**Explanation:**
This section provides a structured method for calculating both the current and acid-test ratios, which are key measures of a company's liquidity. These ratios can help assess a company's ability to meet its short-term obligations.](https://content.bartleby.com/qna-images/question/f2bfa172-bfc6-4a2e-9589-90b7bd2d30c6/1c401701-0919-42bc-bead-9de35892e1dd/q4q4j3n_thumbnail.png)
Transcribed Image Text:**Educational Website Content: Financial Ratio Analysis**
**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
11. Return on equity
**Note:** Do not round intermediate calculations.
---
**Instructions:**
Complete these calculations by entering your answers in the tabs below.
Tabs available: Req 1 and 2, Req 3, Req 4, Req 5, Req 6, Req 7, Req 8, Req 9, Req 10, Req 11
---
### Compute the Current Ratio and Acid-Test Ratio
**(1) Current Ratio**
- **Numerator:**
- Current Assets / Current Liabilities
- **Denominator:**
- Equals the Current Ratio
- The result will be formatted as "Current Ratio = X to 1"
---
**(2) Acid-Test Ratio**
- **Numerator:**
- (Current Assets - Inventory) / Current Liabilities
- **Denominator:**
- Equals the Acid-Test Ratio
- The result will be formatted as "Acid-Test Ratio = X to 1"
---
Use the navigation buttons to move between calculation tabs:
[Req 1 and 2] [Req 3]
**Explanation:**
This section provides a structured method for calculating both the current and acid-test ratios, which are key measures of a company's liquidity. These ratios can help assess a company's ability to meet its short-term obligations.
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