Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance

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Selected Current Year End Financial Statements Of Cabot Corporation Follow All Sales Were On Credit Selected Balance 1 (394.38 KiB) Viewed 31 times

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, $51,900; total assets, $189,400; common stock, $85,000; and retained earnings, $34,579.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable 8,800 Accrued wages payable 34,000 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,600 Common stock 147,300 Retained earnings $ 240,850 Total liabilities and equity $ 19,500 4,400 3,800 64,400 85,000 63,750 $ 240,850 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 449,600 Cost of goods sold 297, 050 Gross profit 152,550 Operating expenses 99,400 Interest expense 4,300 Income before taxes 48,850 Income tax expense 19,679 Net income $ 29,171 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.)