Check 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, $55,900; total assets, $219,400; common stock, $82,000; and retained earnings, $40,715.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 cost of goods sold 297,650 Gross profit 150,950 Operating expenses 99,200 Interest expense 4.300 Ineone before taxes 47, 450 Income tax expense 19,115 Net income $ 28,335 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 12,000 Accounts payablo 8,800 Acerued wages payable 28,800 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,500 common stock 154,300 Retained earnings $ 246,550 Total liabilities and equity $ 16,500 3,200 4,400 71,400 Prepaid expenses Plant assets, net Total assets 82,000 69,050 $ 246,550 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.) Required: 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) 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 Req 5 Reg 6 Reg 7 Req 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denominator: Choose Numerator: 1 Current Ratio Current ratio oto 1 / (2) Acid-Test Ratio Choose Denominator: Choose Numerator: 1 Acid-Test Ratio Acid-Test Ratio 0 to 1 1 Reg1 and 2 Req3 > 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. Req7 Reg Reg 9 Reg 10 Reg 11 Reg 1 and 2 Req3 Reg 4 Regs Reg 6 Compute the days' sales uncollected, (3) Days Sales Uncollected Choose Numerator: 1 Choose Denominator: X Days Days Sales Uncollected - Days sales uncollected 1 O days 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 Reg 9 Reg 10 Reg 11 Compute the inventory turnover. (4) Inventory. Turnover Choose Denominator: Choose Numerator: 1 1 Inventory Turnover - Inventory turnover O times 1 (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. Reg 5 Reg 6 Req Reg 8 Reg 9 Reg 10 Reg 11 Req 1 and 2 Reg 3 Reg 4 Compute the days' sales In Inventory (5) Days Sales In Inventory 1 Choose Denominator: Choose Numerator: Days - Days' Sales In Inventory + Days' sales in Inventory oday 1 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 ( 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 Req 4 Req5 Reg 6 Reg 7 Req 8 Reg 9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Egulty Ratio Choose Denominator: 1 1 Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 1 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. Req5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Reg 1 and 2 Req3 Req 4 Compute the times interest earned. (7) Times Interest Earned 1 Choose Denominator: Choose Numerator: Times Interest Earned Times interest earned 1 1 O times 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 Req3 Reg 4 Reqs Reg 6 Req? Reg 8 Reg 9 Reg 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: 1 Profit margin ratio - Profit margin ratio 4 1 0 % 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. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover (9) Total Asset Turnover Choose Denominator Choose Numerator: Total Asset Turnover Total asset turnover times Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' soles 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. Reg 5 Req6 Req? Reg 8 Reg 9 Reg 10 Reg 11 Red 1 and 2 Req3 Reg 4 Compute the return on total assets. (10) Return on Total Assets 1 Choose Denominator: Choose Numerator: Return on Total Assets Return on total assets 0 % 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 (10) return on common stockholders' equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req Reas Reg 6 Reg 7 Reg Red Reg 10 Reg 11 Compute the return on common stockholders' equity. Return on Common Stockholders Equity Choose Denominator Choose Numerator: Return On Common Stockholders' Equity - Return on common stockholders' equity O