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, $49,900; total assets, $239,400; common stock, $84,000; and retained earnings, $45,515.)
CABOT CORPORATION Income Statement For Current Year Ended December 31 | |||
Sales | $ | 451,600 | |
Cost of goods sold | 297,450 | ||
Gross profit | 154,150 | ||
Operating expenses | 98,700 | ||
Interest expense | 4,400 | ||
Income before taxes | 51,050 | ||
Income tax expense | 20,565 | ||
Net income | $ | 30,485 | |
CABOT CORPORATION Balance Sheet December 31 | |||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 22,000 | Accounts payable | $ | 16,500 | ||
Short-term investments | 9,000 | Accrued wages payable | 3,400 | ||||
Accounts receivable, net | 31,200 | Income taxes payable | 2,900 | ||||
Merchandise inventory | 36,150 | Long-term note payable, secured by mortgage on plant assets | 66,400 | ||||
Prepaid expenses | 2,550 | Common stock | 84,000 | ||||
Plant assets, net | 148,300 | Retained earnings | 76,000 | ||||
Total assets | $ | 249,200 | Total liabilities and equity | $ | 249,200 | ||
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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