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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, $55,900; total assets, $239,400; common stock, $89,000; and retained earnings. $32,241) 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 $ 12,000 Accounts payable 8,800 Accrued wages payable 32,400 Income taxes payable 34,150 Long-tern note payable, secured by mortgage on plant assets 2,500 Common stock 149,300 Retained earnings $ 239,150 Total liabilities and equity For Current Year Ended December 31 Sales Cost of goods sold. $ 450,600 297,250 Gross profit 153,350 Operating expenses 98,800 Interest expense 4,800 Income before taxes 49,750 Income tax expense 20,041 529,709 $ 18,500 2,800 3,500 63,400 89,000 61,950 $ 239,150 Net income 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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