Below are selected year-end financial statements from the Cabot Corporation. (All sales were on credit; selected balance sheet amounts as of December 31, 2012 were inventory, $52,900; total assets, $179,400; common stock, $100,000; and retained earnings, $52,748.)

CABOT CORPORATION Income statement For the year ended December 31, 2013
Sales	ps	455,600
cost of goods sold		297,450
Gross profit		158,150
operating expenses		99,500
Interest expenses		4,900
income before taxes		53,750
Income taxes		21,653
Net Income	ps	32,097

CABOT CORPORATION Balance Sheet December 31, 2013
Assets				Commitments and equity
Money	ps	14,000		Accounts payable	ps	25,500
Short-term investments		9,400		Accrued wages payable		3.800
Accounts receivable, net		33,200		Income taxes payable		4,100
Documents to be collected (trade)*		6,500		Long-term note payable, guaranteed
Merchandise inventory		36,150		by mortgage on plant assets		62,400
Prepaid expenses		2,750		Common actions		100,000
Plant assets, net		150,300		Retained earnings		56,500
total assets	ps	252,300		Total liabilities and equity	ps	252,300

* These are short-term notes receivable derived from customer (commercial) sales.

Required:

Calculate the following: 

(1) current ratio, 

(2) acid test ratio, 

(3) days of uncollected sales,

 (4) inventory turnover,

 (5) days of sales in inventory, 

(6) debt to capital, 

(7) times interest earned, 

(8) profit margin ratio, 

(9) total asset turnover, 

(10) return on total assets, and

 (11) return on common stock.

 (Use all 365 days of the year.)

Answer rating: 100% (QA)

Compute the following 1 current ratio Current ratio Current assetCurrent Liability Current asset Cash Shortterm investments Accounts receivable net No... View the full answer