4. Problem 13-4A Calculating financial statement ratios LO P3 142 points eBook 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, $48,900; total assets, $189, 1400, common stock, $90,000, and retained earnings, $33748.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,250 Gross profit 151,350 Operating expenses 98,600 Interest expense 4,100 Income before taxes 48,650 Income tax expense 19.598 Net incone $ 29,052 Print References Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 8,400 Accrued wages payable 33,700 Income taxes payable 32,150 Long-tern note payable, secured by mortgage on plant assets 2,650 Comon stock 153,300 Retained earnings $240,200 Total liabilities and equity $ 17,500 3,200 3,300 63,400 Prepaid expenses Plant assets, net Total assets 90,000 62,800 $ 240,200 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 tumover (10) return on total assets, and (11) return on common stockholders' 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 invente (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) ret on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. ok Read Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Req 1 and 2 Req 4 Req 5 Req3 Compute the current ratio and acid-test ratio. ht Current Ratio Choose Denominator: incos Choose Numerator: Current assets $ 86,9001 Current liabilities $ Current Ratio Current Ratio 3.6 to 1 24,000 (2) Acid-Test Ratio Choose Numerator: Choose Denominator: Quick assets 1 Current liabilities $ 89,55011 - Acid-Test Ratio - Acid-Test Ratio 0 to 1 Req3 > eBook Complete this question by entering your answers in the tabs below. Print Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Req8 Req9 Req 10 Req 11 References Compute the days' sales uncollected. Days' Sales Uncollected 1 Choose Denominator: Days Choose Numerator: Days Sales Uncollected - Days Sales Uncollected 0 days Plant assets, net Total assets 153,300 $ 240,200 Retained earnings Total liabilities and equity 62,800 $ 240,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected. (4) inventory turnover, (5) days' sales in inver (6) debt-to-equity ratio, ) times interest earned, (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (11) on common stockholders' equity. (Do not round intermediate calculations.) Book Complete this question by entering your answers in the tabs below. Print Req 1 and 2 Reg 3 Ref 4 Reg 5 Reg 6 Req? Req8 Reg 9 Req 10 Req 11 rences Compute the inventory turnover Inventory Turnover Choose Denominator: Choose Numerator: Inventory Turnover Inventory Turnover O times Merchandise inventory Prepaid expenses Plant assets, net Total assets 32,156 Long-term note ayable, secu by mortgage on plant assets 2,650 Common stock 153,300 Retained earnings $ 240,200 Total liabilities and equity 90,000 62,800 $ 240,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected. (4) inventory turnover. (5) days' sales in ir (6) debt-to-equity ratio, (7) times interest earned (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and on common stockholders' equity. (Do not round intermediate calculations.) v Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Read Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 ces Compute the days' sales in inventory. (5) Days' Sales In Inventory Choose Denominator: x Days Choose Numerator: X = Days' Sales In Inventory Days' Sales in Inventory o days x Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected. (4) inventory turnover, (5) days' sales (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, ar on common stockholders' equity. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reqb Reg 8 Reg 9 Reg 10 Reg 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned O times Retained earnings Plant assets, net Total assets 153,300 $ 240,200 Total liabilities and equity $ 240,200 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in in (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (1 on common stockholders' equity. (Do not round intermediate calculations.) ook Complete this question by entering your answers in the tabs below. int Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req9 Rbq 10 Reg 11 ences Compute the return on total assets. (10) Return on Total Assets Choose Denominator: Choose Numerator: Return on Total Assets - Return on Total Assets 01% Print Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 References Req? Reg 6 Reg Reg 9 Reg 10 Reali Compute the return on common stockholders' equity. Choose Numerator: Return on Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity - Return On Common Stockholders' Equity 0 % Reg 10