Chapter 13 Saved Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit selected balance sheet amounts at December 31 of the prior year were inventory, $55,900, total assets, $219,400; common stock. $88,000; and retained earnings, $35.822.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement $ 18,000 Accounts payable Accrued wages payable 8,000 29,000 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 149,300 Retained earnings $ 239,300 Total liabilities and equity For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Incone before taxes Income tax expense Net income Required: $447,600 298,150 149,450 99,000 4,100 46,350 18,672 $27,678 $16,500 3,200 3,700 64,400 88,000 63,500 $ 239,300 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 equity (Do not round intermediate calculations.) < Prev 2 of 3 Next >