Financial statements of cabot corporation

Assignment Help Financial Accounting

Reference no: EM13922509

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $48,900; total assets, $199,400; common stock, $115,000; and retained earnings, $52,348.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2013
Sales	$	447,600
Cost of goods sold		297,950

Gross profit		149,650
Operating expenses		98,600
Interest expense		4,800

Income before taxes		46,250
Income taxes		18,631

Net income	$	27,619

CABOT CORPORATION Balance Sheet December 31, 2013
Assets			Liabilities and Equity
Cash	$	18,000	Accounts payable	$	26,500
Short-term investments		9,000	Accrued wages payable		3,400
Accounts receivable, net		31,200	Income taxes payable		4,500
Notes receivable (trade)*		6,500	Long-term note payable, secured
Merchandise inventory		40,150	by mortgage on plant assets		62,400
Prepaid expenses		3,000	Common stock		115,000
Plant assets, net		153,300	Retained earnings		49,350

Total assets	$	261,150	Total liabilities and equity	$	261,150

* These are short-term notes receivable arising from customer (trade) sales.

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.

Reference no: EM13922509

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