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Problem 13-4A Calculating financial statement ratios LO P3

Selected current year-end financial statements of CabotCorporation follow. (All sales were on credit; selected balancesheet amounts at December 31 of the prior year wereinventory, $54,900; total assets, $179,400; common stock, $87,000;and retained earnings, $30,193.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales	$	451,600
Cost of goods sold		298,150
Gross profit		153,450
Operating expenses		98,900
Interest expense		4,300
Income before taxes		50,250
Income tax expense		20,243
Net income	$	30,007

CABOT CORPORATION Balance Sheet December 31
Assets				Liabilities and Equity
Cash	$	14,000		Accounts payable	$	18,500
Short-term investments		8,200		Accrued wages payable		3,800
Accounts receivable, net		29,400		Income taxes payable		3,300
Merchandise inventory		36,150		Long-term note payable, secured by mortgage on plantassets		69,400
Prepaid expenses		3,150		Common stock		87,000
Plant assets, net		151,300		Retained earnings		60,200
Total assets	$	242,200		Total liabilities and equity	$	242,200

Required:
Compute the following: (1) current ratio, (2) acid-test ratio, (3)days' sales uncollected, (4) inventory turnover, (5) days' sales ininventory, (6) debt-to-equity ratio, (7) times interest earned, (8)profit margin ratio, (9) total asset turnover, (10) return on totalassets, and (11) return on common stockholders' equity. (Donot round intermediate calculations.)