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, $46,900 total assets, $219,400 common stock, $81,000 and retained earnings, $38,566 ) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 298,450 Gross profit 152,150 Operating expenses 99,500 Interest expense 4,700 Income before taxes 47,950 Income tax expense 19,316 Net income $ 28,634 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 15,500 Short term investments 9,200 Accrued wages payable 4,000 Accounts receivable, net 31,800 Income taxes payable 3,100 Merchandise inventory 38,150 Long term note payable, secured by mortgage on plant assets 71,400 Prepaid expenses 2,750 Common stock 81,000 Plant assets, net 150,300 Retained earnings 67,200 Total assets $ 242,200 Total liabilities and equity $ 242,200 (1) Choose Numerator Current assets Current Ratio I Choose Denominator Current liabilities 1 $ Current Ratio Current ratio 22,600 to 1 (2) Acid Test Ratio pose Denominator Choose Numerator Quick assets Acid Test Ratio Acid Test Ratio 22,600 1 to 1 Current liabilities $ 1 (3) Days' Sales Uncollected Choose Denominator x Days Choose Numerator I Days Sales Uncollected Accounts Receivable, net (including current notes receivable from customers) 1 Net sales x 365 Days sales uncollected 450,600 x days (5) Choose Numerator Merchandise inventory Days' Sales in Inventory Choose Denominator x Cost of goods sold x Days 365 i Days' Sales in Inventory Days' sales in inventory 0 days Choose Numerator Total Asset Turnover Choose Denominator Average total assets Total Asset Turnover Net sales Total asset turnover 0 times (10) Return on Total Assets Choose Denominator Choose Numerator Return on Total Assets Net income Average total assets Return on total assets 28,634 1 0

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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 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, $46,900; total assets, $219,400; common stock, $81,000; and retained earnings, $38,566.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales	$	450,600
Cost of goods sold		298,450
Gross profit		152,150
Operating expenses		99,500
Interest expense		4,700
Income before taxes		47,950
Income tax expense		19,316
Net income	$	28,634

CABOT CORPORATION Balance Sheet December 31
Assets			Liabilities and Equity
Cash	$	10,000	Accounts payable	$	15,500
Short-term investments		9,200	Accrued wages payable		4,000
Accounts receivable, net		31,800	Income taxes payable		3,100
Merchandise inventory		38,150	Long-term note payable, secured by mortgage on plant assets		71,400
Prepaid expenses		2,750	Common stock		81,000
Plant assets, net		150,300	Retained earnings		67,200
Total assets	$	242,200	Total liabilities and equity	$	242,200

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(1) Choose Numerator: Current assets Current Ratio I Choose Denominator: | Current liabilities | 1 | $ Current Ratio Current ratio 22,600 = to 1 (2) Acid-Test Ratio pose Denominator: Choose Numerator: Quick assets = Acid-Test Ratio = Acid-Test Ratio 22,600] = 1 to 1 Current liabilities $ 1 (3) Days' Sales Uncollected Choose Denominator: x Days Choose Numerator: I = Days Sales Uncollected Accounts Receivable, net (including current notes receivable from customers) 1 Net sales x | 365 = Days sales uncollected 450,600 x days (5) Choose Numerator: Merchandise inventory Days' Sales in Inventory. Choose Denominator: x Cost of goods sold x Days 365 = = i Days' Sales in Inventory Days' sales in inventory 0 days Choose Numerator: Total Asset Turnover Choose Denominator: Average total assets = Total Asset Turnover Net sales | = Total asset turnover 0 times (10) Return on Total Assets Choose Denominator: Choose Numerator: = Return on Total Assets Net income Average total assets Return on total assets 28,634 1 0 %