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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 $ 249 250

Solution

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