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Selected current year - end financial statements of Cabot Corporation follow. ( All sales were on credit; selected balance sheet amounts at December 3 1
Selected current yearend financial statements of Cabot Corporation follow. All sales were on credit; selected balance sheet amounts at December of the prior year were inventory, $; total assets, $; common stock, $; and retained earnings,
$
Assets
Cash
Shortterm investments
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets.
$
$
CABOT CORPORATION
Balance Sheet
December of current year
Liabilities and Equity
Accounts payable
Accrued wages.
payable
Income taxes payable
Longterm note payable, secured by mortgage on plant assets
Common stock
Retained earnings
Total liabilities and equity
$
$
CABOT CORPORATION
Income Statement
For Current Year Ended December
Sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income before taxes
Income tax expense
Net income
$
$
Required:
Compute the following: current ratio, acidtest ratio, days' sales uncollected, inventory turnover, days' sales in inventory,
debttoequity ratio, times interest earned, profit margin ratio, total asset turnover, return on total assets, and return
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