Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $53,900; total assets, $199,400; common stock, $95,000; and retained earnings, $52,348.)

 

CABOT CORPORATION
Income Statement
For Year Ended December 31, 2013
  Sales$455,600  
  Cost of goods sold 298,250  
 

  Gross profit 157,350  
  Operating expenses 99,100  
  Interest expense 4,900  
 

  Income before taxes 53,350  
  Income taxes 21,492  
 

  Net income$31,858  
 




 

CABOT CORPORATION
Balance Sheet
December 31, 2013
  Assets     Liabilities and Equity  
  Cash$10,000     Accounts payable$22,500  
  Short-term investments 8,800     Accrued wages payable 4,000  
  Accounts receivable, net 29,200     Income taxes payable 3,600  
  Notes receivable (trade)* 3,000     Long-term note payable, secured  
  Merchandise inventory 40,150        by mortgage on plant assets 66,400  
  Prepaid expenses 3,100     Common stock 95,000  
  Plant assets, net 153,300     Retained earnings 56,050  
 

  

  Total assets$247,550     Total liabilities and equity$247,550  
 



  




* These are short-term notes receivable arising from customer (trade) sales.

 

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 common stockholders' equity. (Use 365 days a year. Do not round intermediate calculations.)

 

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