Please answer the following question. thank you
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, $50,900; total assets, $239,400; common stock, $86,000; and retained earnings, $32,415.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,750 Gross profit 154,850 Operating expenses 99,000 Interest expense 4,800 Income before taxes 51,050 Income tax expense 20,565 Net income $ 30,485 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 12,000 Accounts payable 9,000 Accrued wages payable 31,200 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,950 Common stock 153,300 Retained earnings $ 242,600 Total liabilities and equity $ 16,500 3,800 3,000 70,400 Prepaid expenses Plant assets, net Total assets 86,000 62,900 $ 242,600 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 Req 4 Req 5 Req 6 Reg 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Choose Denominator: = Current Ratio Current assets Current liabilities = Current ratio 89,300 / $ 23,300 = 3.8 to 1 (2) Acid-Test Ratio Choose Numerator: Choose Denominator: = Acid-Test Ratio Quick assets Current liabilities = Acid-Test Ratio 52,200 $ 23,300 2.2 to 1 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: Days Days Sales Uncollected Accounts Receivable, net Net sales X 365 = Days sales uncollected 31,2001 $ 452,600 X 365 = 25.2 days Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the inventory turnover. (4) Choose Numerator: = Inventory Turnover Choose Denominator: | Average inventory 34,150 1 | $ 42,525 Inventory Turnover Inventory turnover Cost of goods sold = II 0.8 times Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Reg 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 Denominator: Choose Numerator: 1 Days = Merchandise inventory / Net sales 365 = Days' Sales in Inventory Days' sales in inventory 27.5 days $ 34,150 I $ 452,600 X 365 = 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. (6) Choose Numerator: Debt-to-Equity Ratio Choose Denominator: Total equity Il = Debt-to-Equity Ratio Debt-to-equity ratio Total liabilities 1 II 1 = II 0 to 1 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Numerator: Choose Denominator: = Profit margin ratio Profit margin ratio 0 % / II = Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. (9) Total Asset Turnover Choose Numerator: 1 Choose Denominator: II Total Asset Turnover Net sales 1 II Total asset turnover Average total assets $ $ 452,600 1 243,950 1.9 times 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 1 0 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Numerator: / Choose Denominator II = Return On Common Stockholders' Equity Return on common stockholders' equity Net income Preferred dividends II | Average common stockholders' equity 01 $ 144,559 $ 31,082 $ = 21.5 %
