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, $219,400; common stock, $81,000; and retained earnings, $34,397.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 16,000 Accounts payable $ 18,500 Short-term investments 8,400 Accrued wages payable 5,000 Accounts receivable, net 33,200 Income taxes payable 4,300 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 72,400 Prepaid expenses 2,600 Common stock 81,000 Plant assets, net 148,300 Retained earnings 67,450 Total assets $ 248,650 Total liabilities and equity $ 248,650 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 456,600 Cost of goods sold 297,550 Gross profit 159,050 Operating expenses 98,900 Interest expense 4,800 Income before taxes 55,350 Income tax expense 22,297 Net income $ 33,053 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 equity. (Do not round intermediate calculations.)
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