Problem 13-4A (Algo) Calculating financial statement ratios LO P3

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, $54,900; total assets, $219,400; common stock, $86,000; and retained earnings, $35,640.)

CABOT CORPORATION
Balance Sheet
December 31 of current year
Assets		Liabilities and Equity
Cash	$ 16,000	Accounts payable	$ 17,500
Short-term investments	8,600	Accrued wages payable	4,200
Accounts receivable, net	29,200	Income taxes payable	4,000
Merchandise inventory	40,150	Long-term note payable, secured by mortgage on plant assets	68,400
Prepaid expenses	3,050	Common stock	86,000
Plant assets, net	150,300	Retained earnings	67,200
Total assets	$ 247,300	Total liabilities and equity	$ 247,300

CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales	$ 453,600
Cost of goods sold	297,150
Gross profit	156,450
Operating expenses	99,100
Interest expense	4,500
Income before taxes	52,850
Income tax expense	21,290
Net income	$ 31,560

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. (Do not round intermediate calculations.)