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, $$49,900$; total assets, $$219,400$; common stock, $$84,000$; and retained earnings, $$35,772.)$

CABOT CORPORATION

Balance Sheet

December $31$ of current year

Assets Liabilities and Equity

Cash $ $14,000$ Accounts payable $ $16,500$

Short$-$term investments $8,800$ Accrued wages payable $3,200$

Accounts receivable, net $31,400$ Income taxes payable $4,000$

Merchandise inventory $36,150$ Long$-$term note payable, secured by mortgage on plant assets $68,400$

Prepaid expenses $3,050$ Common stock $84,000$

Plant assets, net $148,300$ Retained earnings $65,600$

Total assets $ $241,700$ Total liabilities and equity $ $241,700$

CABOT CORPORATION

Income Statement

For Current Year Ended December $31$

Sales $ $450,600$

Cost of goods sold $298,050$

Gross profit $152,550$

Operating expenses $98,700$

Interest expense $3,900$

Income before taxes $49,950$

Income tax expense $20,122$

Net income $ $29,828$

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.

Note: Do not round intermediate calculations.

Answer rating: 100% (QA)

Answer Cabot Corporation Financial Ratio Analysis Current Year Balance Sheet Information Cash 14000 Shortterm investments 8800 Accounts receivable net ... View the full answer