1 Problem 13-4A Calculating financial statement ratios LO P3 6.66 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, $53,900; total assets, $229,400; common stock, $85,000; and retained earnings, $44,748.) points Ask CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450, 600 Cost of goods sold 297,650 Gross profit 152,950 Operating expenses 99,400 Interest expense 4,900 Income before taxes 48,650 Income tax expense 19,598 Net income $ 29,052 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 9,600 Accrued wages payable 32,800 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 148,300 Retained earnings $ 249,900 Total liabilities and equity 18,500 4,800 3,400 64,400 Prepaid expenses Plant assets, net Total assets 85,000 73,800 $ 249,900 1 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. (Do not round intermediate calculations.) 6.66 points Complete this question by entering your answers in the tabs below. Ask Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Req 7 Req8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current Ratio 1 Choose Denominator: / = Current Ratio Current ratio 0 to 1 / (2) (2 Choose Numerator: Acid-Test Ratio Choose Denominator: 1 / Acid-Test Ratio Acid-Test Ratio 0 to 1 1 Req 1 and 2 Reg 3 >