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Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $50,900; total
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $50,900; total assets, $179,400; common stock, $83,000; and retained earnings, $49,665.) CABOT CORPORATION Incoe Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes s 449,600 298,050 151,550 99,500 4,600 47,450 19,115 $ 28,335 Net income CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory $ 18,500 3,400 3,400 $ 16,000 Accounts payable 9,600 Accrued wages payable 33,400 Income taxes payable 4,500 32,150 Long-term note payable, secured by 66,400 mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,750 Common stock 154,300 Retained earnings 83,000 78,000 252,700 $ 252,700 Total liabilities and equity * These are short-term notes receivable arising from customer (trade) sales 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. (Do not round intermediate calculations.)
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