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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

         

 

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, $47,900; total assets, $209,400; common stock, $82,000; and retained earnings, $33,480.) CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Accounts payable Assets Cash $ 10,000 $ 15,500 Short-term 9,400 investments Accrued wages payable 3,400 Accounts receivable, 28,800 Income taxes payable 3,000 net Merchandise inventory Long-term note payable, secured by mortgage on 36,150 69,400 plant assets Prepaid expenses 2,750 Common stock 82,000 Plant assets, net 151,300 Retained earnings 65,100 $ $ Total assets 238,400 Total liabilities and equity 238,400 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales 454,600 Cost of goods sold 297,850 Gross profit 156,750 Operating expenses 99,600 Interest expense 4,200 Income before taxes 52,950 Income tax expense 21,330 $ 31,620 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 common stockholders' equity. Note: Do not round intermediate calculations.

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