Question
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $51,900; total
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $51,900; total assets, $239,400; common stock, $90,000; and retained earnings, $29,072.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales $ 450,600 Cost of goods sold 297,350 Gross profit 153,250 Operating expenses 99,300 Interest expense 4,000 Income before taxes 49,950 Income taxes 20,122 Net income $ 29,828 CABOT CORPORATION Balance Sheet December 31, 2015 Assets Liabilities and Equity Cash $ 18,000 Accounts payable $ 16,500 Short-term investments 8,400 Accrued wages payable 3,200 Accounts receivable, net 30,400 Income taxes payable 3,400 Notes receivable (trade)* 3,000 Long-term note payable, secured Merchandise inventory 30,150 by mortgage on plant assets 69,400 Prepaid expenses 3,150 Common stock 90,000 Plant assets, net 148,300 Retained earnings 58,900 Total assets $ 241,400 Total liabilities and equity $ 241,400 * These are short-term notes receivable arising from customer (trade) sales. 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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