Question

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, $47,900; total assets, $179,400; common stock, $88,000; and retained earnings, $39,350.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales	$	453,600
Cost of goods sold		296,950
Gross profit		156,650
Operating expenses		98,900
Interest expense		5,000
Income before taxes		52,750
Income tax expense		21,250
Net income	$	31,500

CABOT CORPORATION Balance Sheet December 31
Assets				Liabilities and Equity
Cash	$	20,000		Accounts payable	$	16,500
Short-term investments		9,600		Accrued wages payable		4,000
Accounts receivable, net		29,800		Income taxes payable		4,200
Merchandise inventory		32,150		Long-term note payable, secured by mortgage on plant assets		63,400
Prepaid expenses		3,100		Common stock		88,000
Plant assets, net		152,300		Retained earnings		70,850
Total assets	$	246,950		Total liabilities and equity	$	246,950

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 common stockholders' equity. (Do not round intermediate calculations.)

Answer 1