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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, $179,400; common stock, $89,000; and retained earnings, $30,134.) $ 10,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,000 Accrued wages payable. 29,200 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,750 47,300 Common stock Retained earnings $236,400 Total liabilities and equity $ 16,500 4,000 4,000 62,400 89,000 60,500 $236,400 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement 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: $ 452,600 297,650 154,950 99,600 4,500 50,850 20,484 $ 30,366 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. Note: Do not round intermediate calculations.
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