13-4 Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected...

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Accounting

13-4

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $54,900; total assets, $249,400; common stock, $89,000; and retained earnings, $31,004.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2017
Sales $ 455,600
Cost of goods sold 298,150
Gross profit 157,450
Operating expenses 98,800
Interest expense 4,400
Income before taxes 54,250
Income taxes 21,854
Net income $ 32,396

CABOT CORPORATION Balance Sheet December 31, 2017
Assets Liabilities and Equity
Cash $ 14,000 Accounts payable $ 17,500
Short-term investments 8,800 Accrued wages payable 4,400
Accounts receivable, net 33,400 Income taxes payable 3,500
Notes receivable (trade)* 4,500
Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 69,400
Prepaid expenses 3,050 Common stock 89,000
Plant assets, net 147,300 Retained earnings 63,400
Total assets $ 247,200 Total liabilities and equity $ 247,200

* These are short-term notes receivable arising from customer (trade) sales. Required:(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. (Do not round intermediate calculations.)

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