Problem 17-4A (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, $47,900; total assets, $209,400; common stock, $86,000; and retained earnings, $29,047.)

CABOT CORPORATIONBalance SheetDecember 31 of current yearAssets Liabilities and Equity Cash$ 18,000Accounts payable$ 17,500Short-term investments9,600Accrued wages payable4,600Accounts receivable, net31,000Income taxes payable4,400Merchandise inventory32,150Long-term note payable, secured by mortgage on plant assets68,400Prepaid expenses2,800Common stock86,000Plant assets, net147,300Retained earnings59,950Total assets$ 240,850Total liabilities and equity$ 240,850CABOT CORPORATIONIncome StatementFor Current Year Ended December 31Sales$ 452,600Cost of goods sold297,350Gross profit155,250Operating expenses99,000Interest expense4,500Income before taxes51,750Income tax expense20,847Net income$ 30,903

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.