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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 income

Explanation / 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