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, $53,900; total assets, $249,400; common stock, $83,000; and retained earnings, $35,754.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 297,850 Gross profit 157,750 Operating expenses 99,400 Interest expense 4,100 Income before taxes 54,250 Income tax expense 21,854 Net income $ 32,396 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 12,000 Accounts payable $ 18,500 Short-term investments 8,000 Accrued wages payable 3,200 Accounts receivable, net 32,800 Income taxes payable 4,600 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,600 Common stock 83,000 Plant assets, net 152,300 Retained earnings 68,150 Total assets $ 243,850 Total liabilities and equity $ 243,850 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 common stockholders' equity. (Do not round intermediate calculations.)
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