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, $46,900; total assets, $249,400; common stock, $90,000; and retained earnings, $39,337.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,250 Gross profit 151,350 Operating expenses 99,100 Interest expense 4,000 Income before taxes 48,250 Income tax expense 19,437 Net income $ 28,813 CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 20,000 Accounts payable $ 17,500 Short-term investments 9,200 Accrued wages payable 4,800 Accounts receivable, net 34,000 Income taxes payable 4,600 Merchandise inventory 38,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,800 Common stock 90,000 Plant assets, net 151,300 Retained earnings 68,150 Total assets $ 255,450 Total liabilities and equity $ 255,450 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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