Selected year-end financial statements of McCord Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2010, were inventory, $32,400; total assets,$182,400; common stock, $90,000; and retained earnings,$31,300.
McCORD CORPORATION
Income Statement
For Year Ended December 31, 2011
Sales $348,600
Cost of goods sold 229,150
Gross profit 119,450
Operating expenses 52,500
Interest expense 3,100
Income before taxes 63,850
Income taxes 15,800
Net income $48,050
McCORD CORPORATION
Balance Sheet
December 31, 2011
Assets Liabilities and Equity
Cash $9,000 Accounts payable $16,500
Short-term investments 7,400 Accrued wages payable 2,200
Accounts receivable, net 28,200 Income taxes payable 2,300
Notes receivable (trade)* 3,500 Long-term note payable,secured
Merchandise inventory 31,150 by mortgage on plant assets62,400
Prepaid expenses 1,650 Common stock 90,000
Plant assets, net 152,300 Retained earnings 59,800
Total assets $233,200 Total liabilities and equity $233,200
* These are short-term notes receivable arising from customer(trade) sales.
(1) Current ratio ______ to________
(2) Acid-test ratio________to_________
(3) Days' sales uncollected (including note)____days
(4) Inventory turnover_____times
(5) Days' sales in inventory_____days
(6) Debt-to-equity ratio_____to____
(7) Times interest earned ____ times
(8) Profit margin ratio______ %
(9) Total asset turnover_____times
(10) Return on total assets_______ %
(11) Return on common stockholders' equity______%
Selected year-end financial statements of McCord Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2010, were inventory, $32,400; total assets,$182,400; common stock, $90,000; and retained earnings,$31,300.
McCORD CORPORATION
Income Statement
For Year Ended December 31, 2011
Sales $348,600
Cost of goods sold 229,150
Gross profit 119,450
Operating expenses 52,500
Interest expense 3,100
Income before taxes 63,850
Income taxes 15,800
Net income $48,050
McCORD CORPORATION
Balance Sheet
December 31, 2011
Assets Liabilities and Equity
Cash $9,000 Accounts payable $16,500
Short-term investments 7,400 Accrued wages payable 2,200
Accounts receivable, net 28,200 Income taxes payable 2,300
Notes receivable (trade)* 3,500 Long-term note payable,secured
Merchandise inventory 31,150 by mortgage on plant assets62,400
Prepaid expenses 1,650 Common stock 90,000
Plant assets, net 152,300 Retained earnings 59,800
Total assets $233,200 Total liabilities and equity $233,200
* These are short-term notes receivable arising from customer(trade) sales.
(1) Current ratio ______ to________
(2) Acid-test ratio________to_________
(3) Days' sales uncollected (including note)____days
(4) Inventory turnover_____times
(5) Days' sales in inventory_____days
(6) Debt-to-equity ratio_____to____
(7) Times interest earned ____ times
(8) Profit margin ratio______ %
(9) Total asset turnover_____times
(10) Return on total assets_______ %
(11) Return on common stockholders' equity______%
Related questions
Selected year-end financial statements of Cabot Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2015, were inventory, $55,900; total assets,$249,400; common stock, $85,000; and retained earnings,$48,092.)
| CABOT CORPORATION Income Statement For Year Ended December 31, 2016 | ||
| Sales | $ | 453,600 |
| Cost of goods sold | 297,550 | |
| Gross profit | 156,050 | |
| Operating expenses | 98,800 | |
| Interest expense | 3,900 | |
| Income before taxes | 53,350 | |
| Income taxes | 21,492 | |
| Net income | $ | 31,858 |
| CABOT CORPORATION Balance Sheet December 31, 2016 | ||||||
| Assets | Liabilitiesand Equity | |||||
| Cash | $ | 18,000 | Accounts payable | $ | 19,500 | |
| Short-term investments | 9,400 | Accrued wages payable | 3,800 | |||
| Accounts receivable, net | 33,600 | Income taxes payable | 3,300 | |||
| Notes receivable (trade)* | 6,000 | Long-term note payable,secured | ||||
| Merchandise inventory | 36,150 | by mortgage on plant assets | 66,400 | |||
| Prepaid expenses | 2,500 | Common stock | 85,000 | |||
| Plant assets, net | 152,300 | Retained earnings | 79,950 | |||
| Total assets | $ | 257,950 | Total liabilities andequity | $ | 257,950 | |
* These are short-term notes receivable arising from customer(trade) sales.
Required:
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 interestearned, (8) profit margin ratio, (9) total asset turnover, (10)return on total assets, and (11) return on common stockholders'equity. (Do not round intermediatecalculations.)
| * These are short-term notes receivable arising from customer(trade) sales.
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