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ID: 2397130 • Letter: Q
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Q Search the web. · | a search the web. utresno city canvas-Yale x VE McGraw- nect x xy M Ch 13 Problem(s) Connect hl3 Problem ? ezto.rmheducation.com mtpx Selected year-end financial state ients of Cabot Corporation follow (All sales were on credit, selected balance she t amounts at Decer ber 31, 2014 were inventory, S48 900, total assets, $189,400, common stock. 580,000, and retained ea ings, $48,928.) CABOT CORPORATION Income Statement For Y ar Ended December 31, 2015 Sales $ 454 600 298 550 Cost o goods sold Gross profi Operating expenses interest expense 99 400 4,700 Income before taxes Income taxes 51,950 20.928 Net income S 31.022 CABOT CORPORATION Balance Sheet December 31. 2015 Assets Cash Liabilities and Equity Accounts payable S 20 000 Accounts receivable net Notes receivable itrade) Merchandise inventory 000Accrued wages payable 33.400 Income taxes payrable 3500Long-term note payable, secured 30 150 S 17 500 3.400 3.000 by mortgage on plant assets Common stock Retained earnings Plant sets net 150 300 5249 250 Total liabilties and equity 79.950 $ 249 250Explanation / Answer
1
Current Ratio
Choose Numerator
/
Choose denominator
Current Ratio
Current Assets
/
Current liabilities
Current Ratio
2015
$ 98,950.00
/
$ 23,900.00
4.14
to 1
2
Acid Test Ratio
Choose Numerator
/
Choose denominator
Acid Test Ratio
Liquid Assets
/
Current liabilities
Acid Test Ratio
2015
$ 62,400.00
/
$ 23,900.00
2.61
to 1
3
Days sales Uncollected
Choose Numerator
/
Choose denominator
Days sales Uncollected
Accounts Receivables
/
Net Annual credit sales *365
Days sales Uncollected
2015
$ 33,400.00
/
454600*365
26.82
Days
4
Inventory turnover
Choose Numerator
/
Choose denominator
Inventory turnover
Cost of Goods sold
/
Average Inventory
Inventory turnover
2015
$ 298,550.00
/
((48900+30150)/2)
7.55
Times
5
Days sales in Inventory
Choose Numerator
/
Choose denominator
Days sales in Inventory
Inventory
/
Cost of Goods sold*365
Days sales in Inventory
2015
$ 30,150.00
/
298550*365
36.86
Days
6
Debt to Equity Ratio
Choose Numerator
/
Choose denominator
Debt to Equity Ratio
Debts
/
Equity
Debt to Equity Ratio
2015
$ 65,400.00
/
$ 159,950.00
0.41
to 1
7
Times Interest Earned
Choose Numerator
/
Choose denominator
Times Interest Earned
EBIT
/
Interest Expenses
Times Interest Earned
2015
$ 56,650.00
/
$ 4,700.00
12.05
times
8
Profit Margin ratio
Choose Numerator
/
Choose denominator
Profit Margin ratio
Net profit
/
sales
Profit Margin ratio
2015
$ 31,022.00
/
$ 454,600.00
7%
9
Total Asset Turnover
Choose Numerator
/
Choose denominator
Total Asset Turnover
Sales
Average Total assets
Total Asset Turnover
2015
$ 454,600.00
(189400+249250)/2
2.07
times
10
Return on Total Assets
Choose Numerator
/
Choose denominator
Return on Total Assets
EBIT
/
Total Net Assets
Return on Total Assets
2015
$ 56,650.00
/
$ 249,250.00
23%
11
Return on Common stockholder's Equity
Choose Numerator
/
Choose denominator
Return on Common stockholder's Equity
Net Profit
/
Average Common stockholder's Equity
Return on Common stockholder's Equity
2015
$ 31,022.00
/
(128928+159950)
21%
1
Current Ratio
Choose Numerator
/
Choose denominator
Current Ratio
Current Assets
/
Current liabilities
Current Ratio
2015
$ 98,950.00
/
$ 23,900.00
4.14
to 1
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