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.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 297,250 151,350 Cost of goods sold Gross profit Operating expenses Interest expense 98,600 4,100 Income before taxes 48,650 19,598 Income tax expense 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 retained earnings, $33,748.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 297,250 151,350 Cost of goods sold Gross profit Operating expenses Interest expense 98,600 4,100 Income before taxes 48,650 19,598 Income tax expense Net income $ 29,052

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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Question

100%

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.)
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$ 448,600
297,250
151,350
Cost of goods sold
Gross profit
Operating expenses
Interest expense
98,600
4,100
Income before taxes
48,650
19,598
Income tax expense
Net income
$ 29,052

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