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, $55.900: total assets, $189,400; common stock, $87,000, and retained earnings, $29,103.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $10,000 Accounts payable 8,600 Accrued wages payable 30,400 Income taxes payable 40,150 2,550 148,300 Retained earnings $ 240,000 Total liabilities and equity Operating expenses Interest expense Income before taxes Income tax expense $ 455,600 298,450 157,150 99,000 4,400 53,750 21,653 Long-tere note payable, secured by mortgage on plant assets Common stock $ 17,500 5,000 3,900 65,400 87,000 61,200 $ 240,000

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, $55.900: total assets, $189,400; common stock, $87,000, and retained earnings, $29,103.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $10,000 Accounts payable 8,600 Accrued wages payable 30,400 Income taxes payable 40,150 2,550 148,300 Retained earnings $ 240,000 Total liabilities and equity Operating expenses Interest expense Income before taxes Income tax expense $ 455,600 298,450 157,150 99,000 4,400 53,750 21,653 Long-tere note payable, secured by mortgage on plant assets Common stock $ 17,500 5,000 3,900 65,400 87,000 61,200 $ 240,000

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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