13-4A (Algo) Calculating financ 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, $47,900, total assets, $199,400, common stock, $86,000, and retained earnings, $32,796) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $8,000 Accounts payable 9,400 Accrued wages payable 32,200 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets. 2,850 Common stock. 149,300 Retained earnings $ 239,900 Total liabilities and equity For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes. Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 $ 15,500 4,000 4,600 66,400 86,000 63,400 $239,900 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. (Do not round intermediate calculations.) 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. (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. (1) Numerator: 1 (2) Numerator: Current Ratio Denominator: Current Ratio Current ratio, 0 to 1 Acid Test Ratio Denominator: Acid Test Ratio Acid-Test Ratio Req3> 0 to 1 12 income tax expense Net income Required: $ 30,604 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 (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Red 4 Req 5 Req 6 Req 7 Req 81 Req 9 Req 10 Req 11 Compute the days' sales uncollected. (3) Days Sales Uncollected Numerator: Denominator Days Days Sales Uncollected Days sales uncollected 0 days Total assets CABOT CORPORATION Income Statement $239,900 Total liabilities and equity. $239,900 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 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. (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 91 Req 10 Req 11 Compute the inventory turnover. (4) Numerator: 1 1 Inventory Turnover Denominator: B Inventory Turnover i Inventory turnover 0 times CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes: Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 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 (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 Reg 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Numerator: Days' Sales in Inventory Denominator: Days Days' Sales in Inventory Days' sales in inventory 0 days 1 CABOT CORPORATION Income Statement For Current Year Ended December 31, Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes. Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inven (6) debt-to-equity ratio, (7) times interest earned. (8) profit margin ratio, (9) total asset turnover. [10) return on total assets, and (11) re on equity. (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 119 Compute the debt-to-equity ratio. (6) Numerator: 1 Debt-to Equity Ratio Denominator: < Req 5 Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 Req 7 > CABOT CORPORATION Income Statement For Current Year Ended December 311 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 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. (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 Rea Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. () Times Interest Earned Numerator: Denominator: Times Interest Earned = Times interest earned. = 0 times 1 < Req 6 Req 8> CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 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. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 21 Req 3 Req 4 Req 5 Req 6 Req 7 Reg 8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Numerator: / Denominator: Profit margin ratio = Profit margin ratio 0% < Req 7 Req 9 > CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes. Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventor (6) debt-to-equity ratio, (7) times interest earned. (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) retu on equity. (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 Rug 9 Req 10 Req 11 Compute the total asset turnover. (9) Numerator: Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover 0 times CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes- Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 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. (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 Rea Req 11 Compute the return on total assets. (10) Numerator: Return on Total Assets Denominator: Return on Total Assets Return on total assets = 0% CABOT CORPORATION Income Statement For Current Year Ended December 31 1 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 453,600 297,850 155,750 99,600 4,900 51,250 20,646 $ 30,604 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. (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 Rea 11 Compute the return on equity. (11) Numerator: Return on Equity Denominator Return On Equity Return on equity 0%