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Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $48,900; total

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $48,900; total assets, $199,400; common stock, $82,000; and retained earnings, $33,888.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2018

Sales

$

450,600

Cost of goods sold

298,050

Gross profit

152,550

Operating expenses

99,300

Interest expense

4,500

Income before taxes

48,750

Income tax expense

19,638

Net income

$

29,112

CABOT CORPORATION Balance Sheet December 31, 2018

Assets

Liabilities and Equity

Cash

$

10,000

Accounts payable

$

17,500

Short-term investments

9,000

Accrued wages payable

4,600

Accounts receivable, net

34,000

Income taxes payable

4,500

Merchandise inventory

34,150

Long-term note payable, secured by mortgage on plant assets

66,400

Prepaid expenses

2,550

Common stock

82,000

Plant assets, net

148,300

Retained earnings

63,000

Total assets

$

238,000

Total liabilities and equity

$

238,000

Compute the total asset turnover.

(9)

Total Asset Turnover

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Total Asset Turnover

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Total asset turnover

2018:

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Compute the return on total assets.

(10)

Return on Total Assets

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Return on Total Assets

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Return on total assets

2018:

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Compute the return on common stockholders' equity.

(11)

Return on Common Stockholders' Equity

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Return On Common Stockholders' Equity

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Return on common stockholders' equity

2018:

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%

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