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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 31 of the prior year
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, $52,900; total assets, $209,400; common stock, $82,000, and retained earnings. $21,975.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $8,000 Accounts payable 9,200 Accrued wages payable 31,000 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,600 147,300 Common stock Retained earnings Total assets $ 230,250 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 311 Sales $455,600 Cost of goods sold 297,950 Gross profit 157,650 Operating expenses 98,900 Interest expense 4,200 Income before taxes 54,550 Income tax expense 21,975 $32,575 $18,500 4,200 3,600 67,400 82,000 54,550 $ 230,250 Net income 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
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