Question
Selected year-end financial statements of Cabot Corp follow: (all sales were on credit; selected balance sheet amounts at Dec. 31, 2012, were inventory $48,900; total
Selected year-end financial statements of Cabot Corp follow: (all sales were on credit; selected balance sheet amounts at Dec. 31, 2012, were inventory $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748).
Income Statement (2013)
Sales $448,600
Cost of goods sold 297,250
Gross profit 151,350
Operating expenses 98,600
Interest expense 4,100
Income before taxes 48,650
Income taxes 19,598
Net income 29,052
Balance Sheet
Assets
Cash 10,000
Short-term investments 8,400
Accts. receivable, net 29,200
Notes receivable 4,500
Merchandise inventory 32,150
Prepaid expense 2,650
Plant assets, net 153,300
Total assets 240,200
Required: compute the following:
1. current ratio
2. acid-test ratio
3. days sales uncollected
4. inventory turn-over
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
11. return on common stockholder equity
Round to one decimal place, except for part 6 round to two decimals.
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