Selected year end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, 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, 2013
Sales . . . . . . . . . . . . . . . . . . . . . . $ 448,600
Cost of goods sold . . . . . . . . . . 297,250
Gross profit . . . . . . . . . . . . . . . . 151,350
Operating expenses . . . . . . . . . 98,600
Interest expense . . . . . . . . . . . . 4,100
Income before taxes . . . . . . . . . 48,650
Income taxes . . . . . . . . . . . . . . . 19,598
Net income . . . . . . . . . . . . . . . . $ 29,052
to twodecimals.
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Required:
Compute the following:
(1) Current ratio,
(2) Acid test ratio,
(3) Days sales uncollected,
(4) Inventory turn over,
(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,
(11) Return on common stockholders equity.
Round to one decimal place, except for part 6 round