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, $$46,900$; total assets, $$229,400$; common stock, $$89,000$; and retained earnings, $$23,158.)$

CABOT CORPORATION

Balance Sheet

December $31$ of current year

Assets Liabilities and Equity

Cash $ $12,000$ Accounts payable $ $18,500$

Short$-$term investments $9,000$ Accrued wages payable $4,400$

Accounts receivable, net $28,600$ Income taxes payable $4,000$

Merchandise inventory $34,150$ Long$-$term note payable, secured by mortgage on plant assets $66,400$

Prepaid expenses $2,550$ Common stock $89,000$

Plant assets, net $150,300$ Retained earnings $54,300$

Total assets $ $236,600$ Total liabilities and equity $ $236,600$

CABOT CORPORATION

Income Statement

For Current Year Ended December $31$

Sales $ $453,600$

Cost of goods sold $298,050$

Gross profit $155,550$

Operating expenses $98,700$

Interest expense $4,700$

Income before taxes $52,150$

Income tax expense $21,008$

Net income $ $31,142$

 

 

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)

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