Problem 17-4A 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, 2012, were inventory, $52,900; total assets, $179,400; common stock, $100,000; and retained earnings, $52,748.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2013
Sales	$	455,600
Cost of goods sold		297,450
Gross profit		158,150
Operating expenses		99,500
Interest expense		4,900
Income before taxes		53,750
Income taxes		21,653
Net income	$	32,097

CABOT CORPORATION Balance Sheet December 31, 2013
Assets				Liabilities and Equity
Cash	$	14,000		Accounts payable	$	25,500
Short-term investments		9,400		Accrued wages payable		3,800
Accounts receivable, net		33,200		Income taxes payable		4,100
Notes receivable (trade)*		6,500		Long-term note payable, secured
Merchandise inventory		36,150		by mortgage on plant assets		62,400
Prepaid expenses		2,750		Common stock		100,000
Plant assets, net		150,300		Retained earnings		56,500
Total assets	$	252,300		Total liabilities and equity	$	252,300

* 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. (Use 365 days a year. Do not round intermediate calculations.)