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, $47,900; total assets, $219,400; common stock, $84,000; and retained earnings, $26,817.)
CABOT CORPORATIONBalance SheetDecember 31 of current yearAssets Liabilities and Equity Cash$ 14,000Accounts payable$ 19,500Short-term investments8,600Accrued wages payable5,000Accounts receivable, net30,200Income taxes payable3,100Merchandise inventory30,150Long-term note payable, secured by mortgage on plant assets65,400Prepaid expenses2,500Common stock84,000Plant assets, net151,300Retained earnings59,750Total assets$ 236,750Total liabilities and equity$ 236,750CABOT CORPORATIONIncome StatementFor Current Year Ended December 31Sales$ 455,600Cost of goods sold297,250Gross profit158,350Operating expenses98,800Interest expense4,400Income before taxes55,150Income tax expense22,217Net income$ 32,933Required:
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.
Note: Do not round intermediate calculations.
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