Problem 13-4A (Algo) Calculating financial statement ratios

Problem 13-4A (Algo) 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, $249,400; common stock, $85,000, and retained earnings, $32,051.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 16,000 9,400 32,400 36,150 3,150 148,300 $ 245,400 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 18,500 4,200 4,600 71,400 85,000 61,700 $ 245,400 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450, 600 Cost of goods sold 298,050 Gross profit 152,550 Operating expenses 98,900 Interest expense 4,000 Income before taxes 49,650 Income tax expense 20,001 Net income $ 29,649 Required. 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 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 Reg 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. Current Ratio Numerator: 1 Denominator: Current Ratio Current ratio 0 to 1 (2) Acid-Test Ratio Numerator: Denominator: Acid-Test Ratio Acid-Test Ratio 0 to 1 * Pesakit Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reqj Reg 4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Numerator: Denominator: X Days = Days Sales Uncollected X Days sales uncollected 0 days 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 Reg 9 Reg 10 Req 11 Compute the inventory turnover. Inventory Turnover Numerator: Denominator: = Inventory Turnover Inventory turnover 0 times Req3 Req 5 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory Denominator: Numerator: X Days = = Days' Sales in Inventory Days' sales in inventory 0 days X = Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Reg 5 Req Reg 7 Reg 8 Reg 9 Reg 10 Req 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Numerator: Denominator: = = Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 - Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 71 Reg 8 Reg 9 Reg 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Numerator: I Denominator: = Times Interest Earned 1 Times interest earned = 0 times Req 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Numerator: 7 Denominator: = Profit margin ratio Profit margin ratio / II = 0 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 Regg Reg 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover Numerator: Denominator: = Total Asset Turnover Total asset turnover o times Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Reg 7 Reg 8 Req 9 Feq 10 Req 11 Compute the return on total assets. (10) Return on Total Assets Numerator: Denominator: Return on Total Assets 1 Return on total assets / 0 %