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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, $199,400; common stock, $84,000; and retained earnings, $53,122.) |
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CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $454,600 297,450 Gross profit Operating expenses Interest expense 157,150 98,800 4,800 Income before taxes Income taxes 53,550 21,572 Net income $31,978 CABOT CORPORATION Balance Sheet December 31, 2015 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory Prepaid expenses Plant assets, net Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured $ 19,500 3,000 3,100 $18,000 9,400 29,400 7,000 42,150 2,850 153,300 by mortgage on plant assets Common stock Retained earnings 67,400 84,000 85,100 Total assets $262,100 Total liabilities and equity $262,100 * 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 calculationsStep by Step Solution
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