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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, $53,900; total assets, $169,400; common stock, $88,000; and retained earnings, $27,957.) 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 Total assets $ 8,000 Accounts payable 8,800 Accrued wages payable 31,000 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,850 151,300 Common stock Retained earnings $ 236,100 Total liabilities and equity. CABOT CORPORATION Income Statement $ 18,500 3,000 3,400 64,400 88,000 58,800 $ 236,100 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: $ 453,600 297,850 155,750 99,500 4,600 51,650 20,807 $ 30,843 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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