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Business, 30.05.2020 21:02 Thelazysandwich

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2015, were inventory, $56,900; total assets, $249,400; common stock, $89,000; and retained earnings, $32,640.) CABOT CORPORATION Income Statement For Year Ended December 31, 2016 Sales $ 454,600 Cost of goods sold 298,550 Gross profit 156,050 Operating expenses 99,300 Interest expense 3,900 Income before taxes 52,850 Income taxes 21,290 Net income $ 31,560 CABOT CORPORATION Balance Sheet December 31, 2016 Assets Liabilities and Equity Cash $ 14,000 Accounts payable $ 16,500 Short-term investments 8,400 Accrued wages payable 3,200 Accounts receivable, net 28,800 Income taxes payable 4,300 Notes receivable (trade)* 4,000 Long-term note payable, secured Merchandise inventory 30,150 by mortgage on plant assets 63,400 Prepaid expenses 2,950 Common stock 89,000 Plant assets, net 152,300 Retained earnings 64,200 Total assets $ 240,600 Total liabilities and equity $ 240,600 * 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.

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