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Problem 17-4A Calculation of financial statement ratios LO P3

Selectedyear-end financial statements of Cabot Corporation follow. (Allsales were on credit; selected balance sheet amounts at December31, 2016, were inventory, $52,900; total assets, $199,400; commonstock, $89,000; and retained earnings, $45,471.)

CABOT CORPORATION
Income Statement
For Year Ended December 31, 2017

Sales	$454,600
Cost of goods sold	297,550
Gross profit	157,050
Operating expenses	99,500
Interest expense	4,500
Income before taxes	53,050
Income taxes	21,371
Net income	$31,679

CABOT CORPORATION
Balance Sheet
December 31, 2017

Assets		Liabilities and Equity
Cash	$20,000	Accounts payable	$17,500
Short-term investments	9,000	Accrued wages payable	4,800
Accounts receivable, net	31,800	Income taxes payable	4,000
Notes receivable (trade)*	6,000
Merchandise inventory	32,150	Long-term note payable, secured by mortgage on plant assets	63,400
Prepaid expenses	2,600	Common stock	89,000
Plant assets, net	154,300	Retained earnings	77,150
Total assets	$255,850	Total liabilities and equity	$255,850

* 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 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.(Do not round intermediate calculations.)