Question

Selected year-end financlal statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income $448,600 297,250 151,350 98,600 ,100 48,650 19,59B 29, 052 CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory 10,000 Accounts payable 8,400 Accrued wages payable 29,200 Incoe taxes payable $ 17,500 3, 200 3,300 ,500 32,150 Long-term note payable, secured 63,400 by mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,650 Comon stock 153, 300 Retained earnings 90,000 62,800 $ 240,200 Total liabilities and equity 240,200 These are short-term notes recelvable arising from customer (trade) sales. Requirec Compute the following: (1) current ratio, (2) acld-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 ratlo, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermedlate calculations.)

Answer 1