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Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected statement of financial position amounts at December 31, 2017, were inventory,
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected statement of financial position amounts at December 31, 2017, were inventory, $48.900; total assets, $189,400; share capital, $90,000, and retained earnings, $22,748.) Cabot Corporation Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Interest expense Profit before tax Income tax expense Net profit $448,600 297,250 151,350 98,600 4,100 48.650 19.598 29,052 Cabot Corporation Statement of Financial Position December 31, 2018 Liabilities and Equity Assets 17.500 Cash Short-term investments Accounts receivable, net Notes receivable (trade)* 10,000 8,400 29,200 4,500 Accounts payable Accrued wages payable Income taxes payable Long term notes payable, secured by mortgage on property, plant and equipment Share capital Retained earnings 3.200 3,300 63,400 90.000 62.800 Merchandise inventory Prepaid expenses Property, plant and equipment, net Total assets 32.150 2,650 153,300 $240,200 Total liabilities and equity $240,200 *These are short term notes receivable from credit customers Required Compute the following ratio and round to the nearest 2 decimal places (a) Acid-test ratio (6) Days' sales uncollected (c) Inventory tumover (d) Times interest earned (e) Profit margin ratio
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