Financial Accounting: P17-4A Selected year end financial statements of Cabot Corp

Financial Accounting P17-4A Calculation of financial statement ratios Selected year end financial statements of Cabot Corp. follow. (All sales were on credit; selected balance sheet amounts at Dec. 31, 2007, 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, 2008 Sales 448,600 Cost of goods sold 297,250 Gross profit 151,350 Operating expenses 98,600 Interest expense 4,100 Income taxes 19,598 Net Income 29,052 Cabot Corporation Balance Sheet December 31, 2008 Assets Liabilities and Equity Cash 10,000 Accts. 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 asset 240,200 Total liabilities and equity 240,200 Required: Compute the following (Round your answer to 1 decimal place. Omit the "%" sign, which is provided for you): 1. Current ratio 2. Acid-test ratio 3. Days' sales uncollected days 4. Inventory turnover times 5. Days' sales in inventory days 6. Debt-to-equity ratio 7. Times interest earned times 8. Profit margin ratio 9. Total asset turnover times 10. Return on total assets 11. Return on common stockholders' equity
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