Check my work Problem 17-4A Calculating financial statement ratios LO P3 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. $54.900; total assets, $259,400; common stock, $83.000; and retained earnings, $33,542.) CADOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 297,650 Gross profit 156,950 Operating expenses 98,900 Interest expense 4,700 Income before taxes 53,350 Income tax expense 21,492 Net income $ 31,858 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 18,000 Accounts payable 8,600 Accrued wages payable 31,600 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 153,300 Retained earnings $ 244,400 Total liabilities and equity $ 16,500 4,600 3,500 71,400 Prepaid expenses Plant assets, net Total assets 83,000 65,400 $ 244,400 Check my work 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 this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: 1 Choose Denominator: Current liabilities Current assets 1 Current Ratio Current ratio to 1 1 (2) Choose Numerator: 1 1 Acid-Test Ratio Choose Denominator: Current liabilities Quick assets Acid-Test Ratio = Acid-Test Ratio to 1 1 Reg 2 Reg 3 >