2 Problem 13-4A Calculation of financial statement ratios LO P3 15 points Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income eBook $ 448,600 297,250 151,350 98,600 4,100 48,650 19,598 $ 29,052 Print References CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory 10,000 Accounts payable $ 17,500 3,200 3,300 8,400 Accrued wages payable 29,200 Income taxes payable 4,500 32,150 Long-term note payable, secured 63,400 by mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,650 Common stock 153,300 Retained earnings 90,000 62,800 $ 240,200 $ 240,200 Total liabilities and equity These are short-term notes receivable arising from customer (trade) sales. Required Requirec 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 rato, (7imes 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 intermedlate 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. Current Ratio Choose Numerator: Choose Denominator:Current Ratio - Current Ratio 2017 0 to 1 id-Test Ratio Choose Numerator I Choose Denominator: Acid-Test Ratio - Acid-Test Ratio 2017 0 to 1 Req 1 and 2 Req 3> Complete this question by entering your answers in the tabs below. Req 1 and 2Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9Req 10Req 11 Compute the days' sales uncollected. Days' Sales Uncollected Choose Numerator: | 1 Choose Denominator: | x Days = Days Sales Uncollected | Days Sales Uncollected 2017: 0 days Req 1 and 2 Req 4 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5Req 6 Rq7Req 8Rq 9 Req 10 Req 11 Compute the inventory turnover. Inventory Turnover - Inventory Turnover Inventory Turnover 0 times Choose Denominator: 2017: Req 3 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req4 Req Req 6 Req 7Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. Days' Sales in Inventory Choose Numerator: Choose Denominator: x DaysDays' Sales in Inventory 2017: 0 days Req 4 Req 6 > 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 debt-to-equity ratio. Debt-to-Equity Ratio Choose Numerator:Choose Denominator: Debt-to-Equity Ratio -Debt-to-Equity Ratio 2017: 0 to 1 Req 6 Req 7 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5Req 6Req 7Req 8 Req 9Req 10Req 11 Compute the times interest earned Times Interest Choose Numerator: Choose Denominator: Times Interest Earned - Times interest earned 2017: KReq 0 Req8 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req ZReq 81 Req 9 Req 10 Req 11 Compute the profit margin ratio. Profit Margin Ratio Choose Denominator:Profit margin ratio Choose Numerator: Profit margin ratio 2017: 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 total asset turnover. Total Asset Turnover Choose Numerator Chooa Denominaton - Total Asset Turnover | Total Asset Turnover 2017 0 times Req 8 Req 10> 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 Choose Denominator: Return on Total Assets Return on Total Assets = 2017: K Req 9 Req 11 > Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 Req 4 Req 5 Rq 6 Req 7Req 8Req 9Req 10Req 11 Compute the return on common stockholders' equity Return on Common Stockholders' Equity Choose Numerator: Choose Denominator - Return On Common Stockholders E Return On Common Stockholders' Equity 2017: Req 10 Req 11