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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, $50,900; total assets, $239,400; common stock, $88,000; and retained earnings, $35,919.) 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 $ 14,000 Accounts payable $ 15,500 9,400 Accrued wages payable 2,800 32,600 Income taxes payable 3,600 32,150 Long-term note payable, secured by mortgage on plant assets 66,400 3,000 150,300 Common stock 88,000 Retained earnings 65,150 $ 241,450 Total liabilities and equity $ 241,450 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 $ 450,600 298,250 152,350 99,500 3,900 48,950 19,719 $ 29,231 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
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