| Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $229,400; common stock, $80,000; and retained earnings, $35,205.) | CABOT CORPORATION | | Balance Sheet | | December 31 of current year | | Assets | | Liabilities and Equity | | | Cash | $ 14,000 | Accounts payable | $ 18,500 | | Short-term investments | 9,400 | Accrued wages payable | 3,600 | | Accounts receivable, net | 32,200 | Income taxes payable | 3,300 | | Merchandise inventory | 30,150 | Long-term note payable, secured by mortgage on plant assets | 69,400 | | Prepaid expenses | 2,500 | Common stock | 80,000 | | Plant assets, net | 152,300 | Retained earnings | 65,750 | | Total assets | $ 240,550 | Total liabilities and equity | $ 240,550 | | CABOT CORPORATION | | Income Statement | | For Current Year Ended December 31 | | Sales | $ 451,600 | | Cost of goods sold | 297,250 | | Gross profit | 154,350 | | Operating expenses | 99,000 | | Interest expense | 4,200 | | Income before taxes | 51,150 | | Income tax expense | 20,605 | | Net income | $ 30,545 | Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) |
