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Business, 25.03.2020 03:59 nuna37

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, $56,900; total assets, $189,400; common stock, $90,000; and retained earnings, $43,151.)

CABOT CORPORATION
Income Statement
For Year Ended December 31, 2015
Sales $450,600
Cost of goods sold 297,750
Gross profit 151,350
Operating expenses 98,600
Interest expense 4,100
Income before taxes 48,650
Income taxes 19,598
Net income $29,052

CABOT CORPORATION
Balance Sheet
December 31, 2015

Assets Liabilities and Equity
Cash $10,000 Accounts payable $17,500
Short-term investments 8,400 Accrued wages payable 3,200
Accounts receivable, net 29,200 Income taxes payable 3,300
Notes receivable (trade)* 4,500 Long-term note payable, secured
Merchandise inventory 32,150 by mortgage on plant assets 63,400
Prepaid expenses 2,650 Common stock 90,000
Plant assets, net 153,300 Retained earnings 62,800
Total assets $240,200 Total liabilities and equity $240,200
* 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 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.)

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Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credi...

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