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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, $54,900; total assets, $179,400; common stock, $88,000; and retained earnings, $25,431) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 10,000 Accounts payable 8,400 Accrued wages payable 30,000 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 2,600 151,300 Common stock Retained earnings Total assets $ 232,450 Total liabilities and equity CABOT CORPORATION Income Statement $ 19,500 4,600 2,900 64,400 88,000 53,050 $ 232,450 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: $ 448,600 298,150 150,450 99,400 4,800 46,250 18,631 $ 27,619 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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