Selected year-end financial statements of cabot corporation


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

Current Ratios

Acid-Test Ratio

Days Sales Uncollected

Inventory Turnover

Dayss sales in Inventory

Debt to equity ratio

Times interest earned

Profit Margin Ratio

Total Asset turnover

Return on Total Assets

Return on common stockholders equity

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Financial Accounting: Selected year-end financial statements of cabot corporation
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