Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance...
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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 year were inventory, $50,900; total assets, $199,400; common stock, $89,000; and retained earnings, $33,297.) DO Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 14,000 Accounts payable 8,000 Accrued wages payable 34,000 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 148,300 Retained earnings $243,550 Total liabilities and equity CABOT CORPORATION $ 15,500 3,600 4,700 64,400 89,000 66,350 $ 243,550 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: $ 455,600 297,150 158,450 99,200 3,900 55,350 22,297 $ 33,053 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. Complete this question by entering your answers in the tabs below. 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, $199,400; common stock, $89,000; and retained earnings, $33,297.) DO Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 14,000 Accounts payable 8,000 Accrued wages payable 34,000 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 148,300 Retained earnings $243,550 Total liabilities and equity CABOT CORPORATION $ 15,500 3,600 4,700 64,400 89,000 66,350 $ 243,550 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: $ 455,600 297,150 158,450 99,200 3,900 55,350 22,297 $ 33,053 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. Complete this question by entering your answers in the tabs below.
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To compute the requested ratios and measures well use the information provided in the financial statements Here are the calculations 1 Current Ratio C... View the full answer
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