$1$

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, $$50,900$; total assets, $$229,400$; common stock, $$83,000$; and retained earnings, $$41,557.$

$\backslash$table$[[,\{$

$\backslash$table$[[$CABOT CORPORATION$],[$Balance Sheet$],[$December $31$ of current year$]]\}],[$Assets$],[$Cash$,$$ $20,000,$Accounts payable,$ $18,500],[$Short$-$term investments,$9,200,$Accrued wages payable,$4,000],[$Accounts receivable, net,$32,600,$Income taxes payable,$3,600],[$Merchandise inventory,$38,150,$Long$-$term note payable, secured by mortgage on plant assets,$70,400],[$Prepaid expenses,$2,800,$Common stock,$83,000],[$Plant assets, net,$151,300,$Retained earnings,$74,550],[$Total assets,$ $254,050,$Total liabilities and equity,$ $254,050]]$

$\backslash$table$[[\backslash$table$[[$CABOT CORPORATION$],[$Income Statement$]]],[$Sales$,$$ $456,600],[$Cost of goods sold,$297,750],[$Gross profit,$158,850],[$Operating expenses,$99,400],[$Interest expense,$4,200],[$Income before taxes,$55,250],[$Income tax expense,$22,257],[$Net income,$ $32,993]]$

Required:

Compute the following:

$(1)$ current ratio,

$(2)$ acid$-$test ratio,

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 equity.

Note: Do not round intermediate calculations.

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Req $3$

Req $4$

Req $5$

Req $6$

Req $7$

Req $8$

Req$9$

Req $10$

Req $11$

Compute the current ratio and acid$-$test ratio.

$\backslash$table$[[(1),$Current Ratio$],[,$Numerator:,$1,$Denominator:,$=,$Current Ratio$],[,,1,,=,$Current ratio$],[,,1,,=,$to $1],[(2),,,$cid$-$Test Ratio,,$]]$