Question
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
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, $239,400; common stock, $88,000; and retained earnings, $31,255.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 453,600 Cost of goods sold 298,450 Gross profit 155,150 Operating expenses 99,500 Interest expense 4,500 Income before taxes 51,150 Income tax expense 20,605 Net income $ 30,545 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 14,000 Accounts payable $ 16,500 Short-term investments 8,600 Accrued wages payable 3,200 Accounts receivable, net 33,800 Income taxes payable 4,100 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 3,150 Common stock 88,000 Plant assets, net 148,300 Retained earnings 61,800 Total assets $ 244,000 Total liabilities and equity $ 244,000 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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