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

(1)	Current Ratio
	Choose Numerator:	/	Choose Denominator:	=	Current Ratio
		/		=	Current ratio
2018:		/		=	0	to 1
(2)	Acid-Test Ratio
	Choose Numerator:	/	Choose Denominator:	=	Acid-Test Ratio
		/		=	Acid-Test Ratio
2018:		/		=	0	to 1