K2 Saved Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit: selected balance sheet amount at December 31 of the prior year were inventory, $48,900; total assets, $239,400; common stock, $83,000; and retained earnings, $30,519.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 298,350 Gross profit 156,250 Operating expenses 99, 400 Interest expense 4,300 Income before taxes 52,550 Income tax expense 21, 169 Net Income $ 31, 381 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $10,000 Accounts payable 8,400 Accrued wages payable 29,000 Income taxes payable 40, 150 Long term note payable, secured by mortgage on plant assets 2,950 Common stock 150,300 Retained earnings $ 240,800 Total liabilities and equity $ 16,500 4,600 3,400 71, 480 Prepaid expenses plant assets, net Total assets 83,000 61, 900 $ 240,800 Required: Compute the following: (1) current ratio (2) acid-test ratio, (3) days' sales uncollected, (4) Inventory turnover, (5) days' sales in inventory, Prev 1 of 1 Next