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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, $55,900; total assets, $249,400; common stock, $84,000; and retained earnings, $53,219.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 16,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,000 Accrued wages payable 34,000 Income taxes payable 40,150 3,050 153,300 Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total assets $ 255,500 Total liabilities and equity CABOT CORPORATION Income Statement $ 18,500 3,200 3,100 66,400 84,000 80,300 $ 255,500 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: $ 447,600 298,350 149,250 98,900 5,000 45,350 18,269 $ 27,081 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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