Reference no: EM131212893
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $55,900; total assets, $199,400; common stock, $95,000; and retained earnings, $51,948.)
CABOT CORPORATION
Income Statement
For Year Ended December 31, 2013
Sales $ 453,600
Cost of goods sold 298,450
Gross profit 155,150
Operating expenses 99,300
Interest expense 4,500
Income before taxes 51,350
Income taxes 20,686
Net income $ 30,664
CABOT CORPORATION
Balance Sheet
December 31, 2013
Assets Liabilities and Equity
Cash $ 20,000 Accounts payable $ 22,500
Short-term investments 9,200 Accrued wages payable 3,600
Accounts receivable, net 32,400 Income taxes payable 3,200
Notes receivable (trade)* 5,000 Long-term note payable, secured
Merchandise inventory 30,150 by mortgage on plant assets 66,400
Prepaid expenses 2,650 Common stock 95,000
Plant assets, net 149,300 Retained earnings 58,000
Total assets $ 248,700 Total liabilities and equity $ 248,700
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, and (11) return on common stockholders' equity.(Use 365 days a year. Do not round intermediate calculations.)
|
The market rate of interest for similar bonds
: On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that. pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or disco..
|
|
How much gross profit should be reported
: Dalton Construction Company contracted to build a bridge for $8,000,000. Construction began in 2014 and was completed in 2015. Data related to the construction are: How much gross profit should be reported for 2015?
|
|
Balance in ending estimated warranty liability
: In 2007, Baldo Balloons sold 100 hot air balloons for $4,000 each. The balloons carry a 5 year warranty for defects. Baldo estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of th..
|
|
Company for payroll tax expense for the current month
: The total payroll for all it's employees for A company was $172,000 for the current month. The FICA-Social security rate is 6.2%, Medicare tax rate is 1.45%. None of the employees have reached the limit for FICA taxes. Given these facts what is the a..
|
|
Compute the current ratio and debt-to-equity ratio
: Selected year-end financial statements of Cabot Corporation follow. Compute the following: current ratio, acid-test ratio, days' sales uncollected, inventory turnover, days' sales in inventory, debt-to-equity ratio, times interest earned, profit marg..
|
|
Determine the equivalent units of production
: Lagana Corporation uses process costing. The following data pertain to its Assembly Department for February. Determine the equivalent units of production for the Assembly Department for February using the weighted-average method. Please show your wor..
|
|
Determine the compensation expense for the stock option plan
: On October 15, 2012, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2013, 30 million stock options were granted, exercisable for 30 million shares of Ensor's $1 par common stock. D..
|
|
What is current value of one share if required rate return
: The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20% a year for the next four years and then decreasing the growth rate to 5% per year. The company just paid its annual div..
|
|
How many vcrs must be sold each year for firm to break even
: Ellson Electronics Company manufactures video cassette recorders, which it sells for $300 per unit. Variable costs are $210 per unit, and fixed costs are $630,000 a year. The tax rate is 40%. How many VCRs must be sold each year for the firm to break..
|