Selected year-end financial statements of Cabot Corporationfollow. (All sales were on credit; selected balance sheet amountsat December 31, 2016, were inventory, $54,900; total assets,$169,400; common stock, $87,000; and retained earnings,$35,579.)
CABOT CORPORATION Income Statement For Year Ended December 31, 2017 |
Sales | $ | 450,600 | |
Cost of goods sold | | 298,150 | |
Gross profit | | 152,450 | |
Operating expenses | | 98,700 | |
Interest expense | | 4,900 | |
Income before taxes | | 48,850 | |
Income taxes | | 19,679 | |
Net income | $ | 29,171 | |
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CABOT CORPORATION Balance Sheet December 31, 2017 |
Assets | | | | Liabilities and Equity | | | |
Cash | $ | 8,000 | | Accounts payable | $ | 17,500 | |
Short-term investments | | 9,200 | | Accrued wages payable | | 3,600 | |
Accounts receivable, net | | 31,400 | | Income taxes payable | | 3,400 | |
Notes receivable (trade)* | | 7,500 | | | | | |
Merchandise inventory | | 32,150 | | Long-term note payable, secured by mortgage on plantassets | | 62,400 | |
Prepaid expenses | | 3,100 | | Common stock | | 87,000 | |
Plant assets, net | | 147,300 | | Retained earnings | | 64,750 | |
Total assets | $ | 238,650 | | Total liabilities and equity | $ | 238,650 | |
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* 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 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.)