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CABOT CORPORATION Balance Sheet CABOT CORPORATION December 31 of Current Year Income Statement For Current Year Ended December 31 Llabilitles and Equity Accounts payable...... Assets Cash..... $ 10,000 $ 17,500 $448,600 Sales .... Short-term investments .. Cost of goods sold . Gross profit..... Operating expenses... Interest expense.. 8,400 Accrued wages payable... 3,200 297,250 Accounts receivable, net. 33,700 Income taxes payable 3,300 151,350 Merchandise inventory... Prepaid expenses.. Plant assets, net.. 32,150 Long-term note payable, secured by mortgage on plant assets..... Common stock.... 98,600 2,650 63,400 4,100 153,300 90,000 Income before taxes..... 48,650 Retained earnings 62,800 $240,200 Income tax expense.. 19,598 Total assets. $240,200 Total liabilities and equity Net income $ 29,052

CABOT CORPORATION Balance Sheet CABOT CORPORATION December 31 of Current Year Income Statement For Current Year Ended December 31 Llabilitles and Equity Accounts payable...... Assets Cash..... $ 10,000 $ 17,500 $448,600 Sales .... Short-term investments .. Cost of goods sold . Gross profit..... Operating expenses... Interest expense.. 8,400 Accrued wages payable... 3,200 297,250 Accounts receivable, net. 33,700 Income taxes payable 3,300 151,350 Merchandise inventory... Prepaid expenses.. Plant assets, net.. 32,150 Long-term note payable, secured by mortgage on plant assets..... Common stock.... 98,600 2,650 63,400 4,100 153,300 90,000 Income before taxes..... 48,650 Retained earnings 62,800 $240,200 Income tax expense.. 19,598 Total assets. $240,200 Total liabilities and equity Net income $ 29,052

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, $48,900; total assets,
$189,400; common stock, $90,000; and retained earnings, $33,748. 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.
Round to one decimal place; for part 6, round to two decimals. 

CABOT CORPORATION Balance Sheet CABOT CORPORATION December 31 of Current Year Income Statement For Current Year Ended December 31 Llabilitles and Equity Accounts payable...... Assets Cash..... $ 10,000 $ 17,500 $448,600 Sales .... Short-term investments .. Cost of goods sold . Gross profit..... Operating expenses... Interest expense.. 8,400 Accrued wages payable... 3,200 297,250 Accounts receivable, net. 33,700 Income taxes payable 3,300 151,350 Merchandise inventory... Prepaid expenses.. Plant assets, net.. 32,150 Long-term note payable, secured by mortgage on plant assets..... Common stock.... 98,600 2,650 63,400 4,100 153,300 90,000 Income before taxes..... 48,650 Retained earnings 62,800 $240,200 Income tax expense.. 19,598 Total assets. $240,200 Total liabilities and equity Net income $ 29,052
Transcribed Image Text:CABOT CORPORATION Balance Sheet CABOT CORPORATION December 31 of Current Year Income Statement For Current Year Ended December 31 Llabilitles and Equity Accounts payable...... Assets Cash..... $ 10,000 $ 17,500 $448,600 Sales .... Short-term investments .. Cost of goods sold . Gross profit..... Operating expenses... Interest expense.. 8,400 Accrued wages payable... 3,200 297,250 Accounts receivable, net. 33,700 Income taxes payable 3,300 151,350 Merchandise inventory... Prepaid expenses.. Plant assets, net.. 32,150 Long-term note payable, secured by mortgage on plant assets..... Common stock.... 98,600 2,650 63,400 4,100 153,300 90,000 Income before taxes..... 48,650 Retained earnings 62,800 $240,200 Income tax expense.. 19,598 Total assets. $240,200 Total liabilities and equity Net income $ 29,052
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