Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance...

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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, $52,900; total assets, $219,400; common stock, $82,000; and retained earnings, $32,557.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 10,000 Accounts payable $ 16,500 9,000 Accrued wages payable 4,400 32,000 Income taxes payable 4,600 36,150 Long-term note payable, secured by mortgage on plant assets 67,400 3,000 150,300 Common stock 82,000 Retained earnings 65,550 $ 240,450 Total liabilities and equity $ 240,450 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income $ 456,600 297,550 159,050 99,500 4,300 55,250 22,257 $ 32,993 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. 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, $52,900; total assets, $219,400; common stock, $82,000; and retained earnings, $32,557.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 10,000 Accounts payable $ 16,500 9,000 Accrued wages payable 4,400 32,000 Income taxes payable 4,600 36,150 Long-term note payable, secured by mortgage on plant assets 67,400 3,000 150,300 Common stock 82,000 Retained earnings 65,550 $ 240,450 Total liabilities and equity $ 240,450 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income $ 456,600 297,550 159,050 99,500 4,300 55,250 22,257 $ 32,993 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)

To compute the requested financial ratios well use the provided information from Cabot Corporations financial statements Lets calculate each ratio ste... View the full answer