C ezto.mheducation.com/hm.tpx Apps My eBay Summary ooe Hair and Nails Honda Part
ID: 2601214 • Letter: C
Question
C ezto.mheducation.com/hm.tpx Apps My eBay Summary ooe Hair and Nails Honda Parts OEM 30 5 20.00 points Selected year-end financial statements of Cabot Corporation follow (All sales were on credit, selected balance sheet amounts at December 31, 2015, were inventory, $56,900; total assets, $189,400, common stock, $83,000; and retained eamnings, $33. 771) CABOT CORPORATION Income Statement For Year Ended December 31, 2016 Sales Cost of goods sold Gross profit $ 453,600 297,150 156,450 99,200 4,200 53,050 21,371 S 31,679 Interest expense Income before taxes Income taxes Net incomeExplanation / Answer
Current assets:
accounts receivable net
10000
short term investments
8600
Accounts receivable net
32400
Notes receivable
5000
Merchandise inventory
36150
Prepaid expense
2600
94750
Current Liabilities:
Accounts payable
16500
Accrued wages
3000
Income tax payable
3700
23200
1
Quick Ratio
Choose numerator
/
Choose denominator
=
Quick ratio
current assets
/
current liabilities
=
94750
/
23200
4.084051724
2
Acid test ratio
Choose numerator
/
Choose denominator
=
Acid test ratio
Current assets- stock
current liabilities
(94750-36150)
23200
=
2.53
3
Days sales uncollected
Average Accounts receivable turnover:
Choose numerator
Choose denominator
x
Days
=
Days sales uncollected
Current receivables
/
Net sales
x
365
26200
453600
x
365
=
21.08245
4
Inventory Turnover:
Choose numerator
Choose denominator
=
Inventory turnover
Cost of goods sold
/
Average inventory
297150
46525
6.386888769
5
Days sales in inventory
Choose numerator
Choose denominator
x
Days
=
Days sales uncollected
Merchandise inventory
/
Cost of goods sold
X
365
=
Days sales uncollected
36150
/
297150
x
365
44.40434
Current assets:
accounts receivable net
10000
short term investments
8600
Accounts receivable net
32400
Notes receivable
5000
Merchandise inventory
36150
Prepaid expense
2600
94750
Current Liabilities:
Accounts payable
16500
Accrued wages
3000
Income tax payable
3700
23200
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