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
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
Compute the following: (1)
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
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09a88cec-9e56-43b7-9333-bcc36458b400%2F27de8703-8142-431e-83eb-50a55c97b04f%2F7fegzhh.jpeg&w=3840&q=75)
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