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Please answer the questions listed under the Required section Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance
Please answer the questions listed under the "Required" section
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, $54,900; total assets, $239,400; common stock, $89,000; and retained earnings, $44,366.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,350 Gross profit 151,250 Operating expenses 99,300 Interest expense 4,000 Income before taxes 47,950 Income tax expense 19,316 Net income 28,634 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 9,600 Accrued wages payable 33,200 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 153,300 Retained earnings $ 249,000 Total liabilities and equity $ 16,500 4,800 3,300 62,400 Prepaid expenses Plant assets, net Total assets 89,000 73,000 $ 249,000 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 common stockholders' equity. (Do not round intermediate calculations.)Step by Step Solution
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