Problem 17-4A (Algo) Calculating financial statement ratios LO P3 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, $54,900, total assets, $189,400; common stock, $88,000, and retained earnings. $32,119) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 10,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,200 Accrued wages payable 31,600 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,700 Common stock 153,300 Retained earnings $ 242,950 Total liabilities and equity $16,500 3,200 3,500 70,400 68,000 61,350 $ 242,950 CABOT CORPORATION Income Statement For Current Year Ended December 311 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $450,600 297,750 152,850 99,400 4,500 48,950 19,719 5 29,231