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, $249,400; common stock, $81,000; and retained earnings. $32,436) 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 $8,000 Accounts payable 8,800 Accrued wages payable 32,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 149, 300 Retained earnings $233,700 Total liabilities and equity CABOY CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 452,600 298,350 Gross profit 154,250 Operating expenses 99,000 Interest expense 3,900 Incone before taxes 51,350 Income tax expense $18,500 4,200 4,500 62,400 81,000 63,100 $ 233,700 Net income Required: 20,686 $30,664 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory. < Prev 9 of 9 Next