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

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Accounting

Selected current year-end financial statements of CabotCorporation follow. (All sales were on credit; selected balancesheet amounts at December 31 of the prior year wereinventory, $49,900; total assets, $199,400; common stock, $86,000;and retained earnings, $34,224.)

CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales$454,600
Cost of goods sold297,850
Gross profit156,750
Operating expenses98,500
Interest expense4,200
Income before taxes54,050
Income tax expense21,774
Net income$32,276
CABOT CORPORATION
Balance Sheet
December 31
AssetsLiabilities and Equity
Cash$12,000Accounts payable$16,500
Short-term investments8,400Accrued wages payable4,600
Accounts receivable, net30,000Income taxes payable4,300
Merchandise inventory38,150Long-term note payable, secured by mortgage on plantassets64,400
Prepaid expenses2,450Common stock86,000
Plant assets, net151,300Retained earnings66,500
Total assets$242,300Total liabilities and equity$242,300


Required:
Compute the following: (1) current ratio, (2) acid-test ratio, (3)days' sales uncollected, (4) inventory turnover, (5) days' sales ininventory, (6) debt-to-equity ratio, (7) times interest earned, (8)profit margin ratio, (9) total asset turnover, (10) return on totalassets, and (11) return on common stockholders' equity. (Donot round intermediate calculations.)

Answer & Explanation Solved by verified expert
3.9 Ratings (490 Votes)
1 current assets cash short term investment accounts receivable merchandise inventory prepaid expenses 12000 8400 30000 38150 2450 91000 current liabilities    See Answer
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