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P17-4A_Cabot Corp_Ratio Analysis

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Question;Selected year end financial statements of Cabot Corp. follow. (All sales were on credit, selected balance sheet amounts at Dec. 31, 2007, were inventory, $48,900, total assets, $189,400, common stock, $90,000, and retained earnings, $22,748.)Income statement for year ended Dec. 2008Sales...........................$448,6...Cost of goods sold.........297,250Gross profit...................151,350Operating expenses.......98,600Interest expense............4,100Income taxes.................19,598Net income......................$29,052Balance Sheet Dec. 2008Assets Liabilities and EquityCash............................$10,00... Accts. payable........................$17,500Short term investments...8,400 Accrued wages payable...........3,200Accounts receivable, net..29,200 Income taxes payable..............3,300Notes receivable (trade)....4,500 Long term note payable, securedMerchandise inventory.....32,150 by mortgage on plant assets....63,400Prepaid expenses..........2,650 Common stock..........................90,000Plant assets, net............153,300 Retained earnings......................62,800total assets....................$240,200 Total liabilities and equity...........$240,200Compute the following: current ratio, acid test ratio, days' sales uncollected, inventory turnover, days' sales in inventory, debt to equity ratio, times interest earned, profit margin ratio, total asset turnover, return on total assets, and return on common stockholder's equity

 

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