13-4A (Algo) Calculating financial statement ratios LO P3 Selected year 1, 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. $51,900; total assets, $209,400, common stock, $87,000; and retained earnings, $29,730.) Note: Use these balance sheet balances as beginning T-account balances in the Project "file part" Attachment 1. Assets Cash & Cash equivalent Short-term investments Accounts receivable, net Merchandise inventory. Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 14,000 Accounts payable $ 18,500 8,400 Salaries and Wages payable 4,000 31,600 Income taxes payable 4,200 40,150 Long-term note payable, secured by mortgage on plant assets 72,400 3,000 Common stock, no-par value 87,000 150,300 Retained earnings 61,350 $247,450 Total liabilities and equity $247,450 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 $ 454,600 297,550 157,050 99,500 4,600 52,950 21,330 $ 31,620 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.) Complete by ntering your answers in the tabs below. Req 1 and 21 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Ree Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current Ratio Choose Denominator: Current Ratio = Current ratio = 0 to 1 (2) Acid-Test Ratio Choose Numerator: 1 Choose Denominator: 1 Acid-Test Ratio = Acid-Test Ratio 0 to 1 Req 1 and 2 Req 3 > Prev 1 of 8 Next > MacBook Pro 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 days' sales uncollected. (3) Days' Sales Uncollected Choose Numerator: Choose Denominator: X Days = Days Sales Uncollected x Days sales uncollected < Req 1 and 2 Req 4 > 0 days Prev 1 of 8 Next > MacBook Pro Note - These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover them various lecture packets. 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 inventory turnover. (4) Choose Numerator: Inventory Turnover T Choose Denominator: Prev 1 of 8 Next > MacBook Pro on common stockholders' equity. (Do not round intermediate calculations.) On total assets, and (11) Note These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover them im various lecture packets. Complete this question by entering your answers in the tabs below. Req 1 and 21 Req 3 Req 4 Red 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory Choose Numerator: 1 Choose Denominator: x Days x x Days' Sales in Inventory Days' sales in inventory. 0 days Prev 1 of 8 Next > MacBook Pro aw Note - These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover various lecture packets. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req Req 7 Req 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Numerator: 1 Choose Denominator: B Debt-to-Equity Ratio 1 = Debt-to-equity ratio = 0 to 1 Prev 1 of 8 Next > MacBook Pro Note - These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover them in various lecture packets. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Leq 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned + 0 times + < Req 6 Req 8 > MacBook Pro Look Note - These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover various lecture packets. Complete this question by entering your answers in the tabs below. Print Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Mc Graw Hill Compute the profit margin ratio. (8) Profit Margin Ratio Choose Numerator: Choose Denominator: = Profit margin ratio 1 Profit margin ratio 1 0% Previ 1 of 8 Next > MacBook Pro C aw Note - These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover th various lecture packets. 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 Rea 9 Req 10 Req 11 Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover 1 Choose Denominator: Total Asset Turnover = Total asset turnover = 0 times < Req 8 Req 10 > < MacBook Pro x w Note These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover the various lecture packets. 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 return on total assets. (10) Return on Total Assets Choose Numerator: 1 Choose Denominator: = 1 = Return on Total Assets Return on total assets 0% MacBook Pro 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.) Note These ratios will be covered over the entirety of the course. You can wait to calculate each ratio as we cover them in the various lecture packets. 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 Req 8 Req 9 Req 10 Req 11 Compute the return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity Choose Denominator. Return On Common Stockholders' Equity Return on common stockholders' equity 0%