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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
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, $52,900; total assets, $199,400; common stock, $85,000; and retained earnings, $37,930.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 16,000 Accounts payable $ 16,500 8,800 Accrued wages payable 3,600 30,400 Income taxes payable 4,200 34,150 Long-term note payable, secured by mortgage on plant assets 66,400 2,600 153,300 Common stock 85,000 Retained earnings 69,550 $ 245,250 Total liabilities and equity $ 245,250 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,450 157,150 99,500 4,700 52,950 21,330 $ 31,620 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
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