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, $55,900; total assets, $199,400; common stock, $85,000; and retained earnings, $52,748.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2013
Sales	$	448,600
Cost of goods sold		297,750
Gross profit		150,850
Operating expenses		99,100
Interest expense		4,100
Income before taxes		47,650
Income taxes		19,195
Net income	$	28,455

CABOT CORPORATION Balance Sheet December 31, 2013
Assets				Liabilities and Equity
Cash	$	16,000		Accounts payable	$	25,500
Short-term investments		8,800		Accrued wages payable		3,400
Accounts receivable, net		31,200		Income taxes payable		3,900
Notes receivable (trade)*		3,000		Long-term note payable, secured
Merchandise inventory		38,150		by mortgage on plant assets		65,400
Prepaid expenses		3,100		Common stock		85,000
Plant assets, net		151,300		Retained earnings		68,350
Total assets	$	251,550		Total liabilities and equity	$	251,550

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