Question

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total assets, $229,400; common stock, $86,000; and retained earnings, $36,336.)

CABOT CORPORATION
Income Statement
For Year Ended December 31, 2017

Sales	$449,600
Cost of goods sold	298,450
Gross profit	151,150
Operating expenses	98,500
Interest expense	4,900
Income before taxes	47,750
Income taxes	19,236
Net income	$28,514

CABOT CORPORATION
Balance Sheet
December 31, 2017

Assets		Liabilities and Equity
Cash	$14,000	Accounts payable	$17,500
Short-term investments	9,200	Accrued wages payable	4,800
Accounts receivable, net	30,400	Income taxes payable	3,900
Notes receivable (trade)*	6,500
Merchandise inventory	34,150	Long-term note payable, secured by mortgage on plant assets	71,400
Prepaid expenses	2,900	Common stock	86,000
Plant assets, net	151,300	Retained earnings	64,850
Total assets	$248,450	Total liabilities and equity	$248,450

* 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 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.)

Answer 1