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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, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Cash Short-term investments. Accounts receivable, net Liabilities and Equity $ 10,000 Accounts payable 8,400 Accrued wages payable Merchandise inventory Prepaid expenses 33,700 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets Plant assets, net 2,650 153,300 Common stock Retained earnings Total assets $ 240,200 Total liabilities and equity CABOT CORPORATION Income Statement $ 17,500 3,200 3,300 63,400 90,000 62,800 $240,200 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: $ 448,600 297,250 151,350 98,600 4,100 48,650 19,598 $ 29,052 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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