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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, $53,900, total assets, $209,400; common stock, $82,000; and retained earnings, $49,288.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 18,000 Accounts payable $18,500 8,800 Accrued wages payable 3,000 29,200 Income taxes payable 4,300 40,150 Long-term note payable, secured by mortgage on plant assets 3,150 Common stock 66,400 82,000 153,300 Retained earnings 78,400 $252,600 Total liabilities and equity $252,600 For Current Year Ended December 31 Sales Cost of goods sold $ 450,600 298,050 Gross profit 152,550 Operating expenses 99,200 Interest expense 4,600 Income before taxes 48,750 19,638 Income tax expense Net income Required: $29,112 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. (Do not round intermediate calculations.)
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