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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, $55,900; total assets, $229,400; common stock, $85,000; and retained earnings, $38,006.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 16,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 8,200 Accrued wages payable 31,200 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,850 151,300 Common stock Retained earnings Total assets $ 243,700 Total liabilities and equity CABOT CORPORATION Income Statement $ 17,500 3,200 2,900 68,400 85,000 66,700 $ 243,700 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 449,600 298,550 151,050 98,600 4,400 48,050 19,356 $ 28,694 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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