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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, $88,000; and retained earnings, $25,918.) 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 $ 10,000 Accounts payable 8,000 29,000 Accrued wages payable Income taxes payable. 38,150 Long-term note payable, secured by mortgage on plant assets 2,950 Common stock 151,300 Retained earnings $ 239,400 Total liabilities and equity For Current Year Ended December 311 Sales Cost of goods sold $ 453,600 298,050 Gross profit 155,550 Operating expenses 99,200 Interest expense 4,300 Income before taxes 52,050 Income tax expense 20,968 $31,082 $ 18,500 3,000 3,500 69,400 88,000 57,000 $ 239,400 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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