Problem 13-4A Calculation of financial statement ratios LO P3

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $53,900; total assets, $239,400; common stock, $84,000; and retained earnings, $36,023.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2017
Sales	$	448,600
Cost of goods sold		298,050
Gross profit		150,550
Operating expenses		99,100
Interest expense		4,600
Income before taxes		46,850
Income taxes		18,873
Net income	$	27,977

CABOT CORPORATION Balance Sheet December 31, 2017
Assets				Liabilities and Equity
Cash	$	18,000		Accounts payable	$	16,500
Short-term investments		8,400		Accrued wages payable		5,000
Accounts receivable, net		28,800		Income taxes payable		4,000
Notes receivable (trade)*		3,500
Merchandise inventory		30,150		Long-term note payable, secured by mortgage on plant assets		65,400
Prepaid expenses		2,750		Common stock		84,000
Plant assets, net		147,300		Retained earnings		64,000
Total assets	$	238,900		Total liabilities and equity	$	238,900

* These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)