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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, $
CABOT CORPORATION
Balance Sheet
December of current year
Assets Liabilities and Equity
Cash $ Accounts payable $
Shortterm investments Accrued wages payable
Accounts receivable, net Income taxes payable
Merchandise inventory Longterm note payable, secured by mortgage on plant assets
Prepaid expenses Common stock
Plant assets, net Retained earnings
Total assets $ 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 on equity.
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