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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, 2014, were inventory, $49,900; total
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $49,900; total assets, $259,400; common stock, $86,000; and retained earnings, $43,934.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales 452,600 Cost of goods sold 298,350 Gross profit 154,250 Operating expenses 99,100 Interest expense 4,300 Income before taxes 50,850 Income taxes 20,484 30,366 Net income CABOT CORPORATION Balance Sheet December 31, 2015 Liabilities and Equity 16,000 Accounts payable 8,200 Accrued wages payable Assets 18,500 Cash Short-term investments 4,800 31,400 ncome taxes payable Accounts receivable, net 3,600 Notes receivable (trade) 7,500 Long-term note payable, secured Merchandise inventory 42,150 by mortgage on plant assets 69,400 3,050 Common stock Prepaid expenses 86,000 Plant assets, net 148,300 Retained earnings 74,300 256,600 Total liabilities and equity 256,600 Total assets 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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