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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, $48,900; total assets, $199,400; common stock, $86,000; and retained earnings, $39,947.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 449,600 Cost of goods sold 298,050 Gross profit 151,550 Operating expenses 98,900 Interest expense 4,500 Income before taxes 48,150 Income tax expense 19,397 Net income $ 28,753 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 8,000 Accrued wages payable 30,200 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 152,300 Retained earnings $ 249,500 Total liabilities and equity $ 18,500 3,800 3,100 69,400 Prepaid expenses Plant assets, net Total assets 86,000 68,700 $ 249,500 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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