Reference no: EM131212893

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $55,900; total assets, $199,400; common stock, $95,000; and retained earnings, $51,948.)

CABOT CORPORATION

Income Statement

For Year Ended December 31, 2013

  Sales $ 453,600

  Cost of goods sold 298,450

  Gross profit 155,150

  Operating expenses 99,300

  Interest expense 4,500

  Income before taxes 51,350

  Income taxes 20,686

  Net income $ 30,664

CABOT CORPORATION

Balance Sheet

December 31, 2013

  Assets   Liabilities and Equity

  Cash $ 20,000   Accounts payable $ 22,500

  Short-term investments 9,200   Accrued wages payable 3,600

  Accounts receivable, net 32,400   Income taxes payable 3,200

  Notes receivable (trade)* 5,000   Long-term note payable, secured

  Merchandise inventory 30,150      by mortgage on plant assets 66,400

  Prepaid expenses 2,650   Common stock 95,000

  Plant assets, net 149,300   Retained earnings 58,000

  Total assets $ 248,700   Total liabilities and equity $ 248,700

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.(Use 365 days a year. Do not round intermediate calculations.)