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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, $52,900; total assets, $199,400; common stock, $89,000; and retained earnings, $37,074.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales $ 447,600 Cost of goods sold 296,950 Gross profit 150,650 Operating expenses 98,500 Interest expense 4,800 Income before taxes 47,350 Income taxes 19,074 Net income $ 28,276 CABOT CORPORATION Balance Sheet December 31, 2015 Assets Liabilities and Equity Cash $ 16,000 Accounts payable $ 18,500 Short-term investments 9,600 Accrued wages payable 4,600 Accounts receivable, net 29,800 Income taxes payable 4,500 Notes receivable (trade)* 7,000 Long-term note payable, secured Merchandise inventory 36,150 by mortgage on plant assets 71,400 Prepaid expenses 2,500 Common stock 89,000 Plant assets, net 152,300 Retained earnings 65,350 Total assets $ 253,350 Total liabilities and equity $ 253,350 * 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.)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92640331

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