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Business, 19.05.2020 18:59 ladypink94

Selected year-end financial 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 CORPORATIONIncome Statement For Year Ended December 31, 2017

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

Assets Liabilities and Equity
Cash $10,000 Accounts payable $17,500
Short-term investments 8,400 Accrued wages payable 3,200
Accounts receivable, net 29,200 Income taxes payable 3,300
Notes receivable (trade)* 4,500 Long-term note payable, secured by mortgage on plant assets 63,400
Merchandise inventory 32,150
Prepaid expenses 2,650 Common stock 90,000
Plant assets, net 153,300 Retained earnings 62,800
Total assets $240,200 Total liabilities and equity $240,200

Required:
Compute the following:

a. current ratio
b. acid-test ratio
c. days' sales uncollected
d. inventory turnover
e. days' sales in inventory
f. debt-to-equity ratio
g. times interest earned
h. profit margin ratio
i. total asset turnover
j. return on total assets
k. return on common stockholders' equity. (Do not round intermediate calculations.)

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