Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected...
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Accounting
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $259,400; common stock, $82,000; and retained earnings, $25,101.)
CABOT CORPORATION
Balance Sheet
December 31 of current year
Assets
Liabilities and Equity
Cash
$ 8,000
Accounts payable
$ 18,500
Short-term investments
9,600
Accrued wages payable
3,800
Accounts receivable, net
28,800
Income taxes payable
3,200
Merchandise inventory
34,150
Long-term note payable, secured by mortgage on plant assets
70,400
Prepaid expenses
2,800
Common stock
82,000
Plant assets, net
149,300
Retained earnings
54,750
Total assets
$ 232,650
Total liabilities and equity
$ 232,650
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$ 450,600
Cost of goods sold
297,850
Gross profit
152,750
Operating expenses
98,700
Interest expense
4,400
Income before taxes
49,650
Income tax expense
20,001
Net income
$ 29,649
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 equity.
Note: Do not round intermediate calculations.
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