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Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $50,900; total assets, $229,400; common stock, $87,000; and retained earnings, $35,668.) CABOT CORPORATION Income Statement For Year Ended December 31, 2018 Sales $ 449,600 Cost of goods sold 297,750 Gross profit 151,850 Operating expenses 98,900 Interest expense 4,500 Income before taxes 48,450 Income tax expense 19,518 Net income $ 28,932 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2018 Liabilities and Equity $ 18,000 Accounts payable 9,400 Accrued wages payable 29,200 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 148,300 Retained earnings $ 241,900 Total liabilities and equity Prepaid expenses Plant assets, net Total assets 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. (Do not round intermediate calculations.) CABOT CORPORATION Balance Sheet December 31, 2018 Liabilities and Equity $ 18,000 Accounts payable 9,400 Accrued wages payable 29,200 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 148,300 Retained earnings $ 241,900 Total liabilities and equity $ 17,500 3,800 3,600 65,400 87,000 64,600 $ 241, 900

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