Question
elected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total
elected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total assets, $239,400; common stock, $88,000; and retained earnings, $44,140.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $449,600 Cost of goods sold 296,850 Gross profit 152,750 Operating expenses 99,500 Interest expense 4,000 Income before taxes 49,250 Income taxes 19,840 Net income $29,410 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash $18,000 Accounts payable $17,500 Short-term investments 8,800 Accrued wages payable 4,800 Accounts receivable, net 33,800 Income taxes payable 3,300 Notes receivable (trade)* 5,000 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,500 Common stock 88,000 Plant assets, net 149,300 Retained earnings 73,550 Total assets $257,550 Total liabilities and equity $257,550 * 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 interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)
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