Problem 13-4A Calculating financial statement ratios LO P3 Prende 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, $51,900; total assets, $229,400; common stock, $90,000; and retained earnings, $24,244.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,6ee Cost of goods sold 297,350 Gross profit 157, 25e Operating expenses 98,600 Interest expense 4,300 Income before taxes 54,350 Income tax expense 21,894 Net income $ 32,456 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory 15,588 3,4ee CASOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 12,008 Accounts payable 8,680 Accrued wages payable 30,000 Income taxes payable 32,159 Long-term note payable, secured by mortgage on plant assets 2,650 Common stock 148,300 Retained earnings $ 233,70 Total liabilities and equity 4,700 63,480 Prepaid expenses Plant assets, net Total assets 98,000 56,7ee $ 233,789 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 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Choose Denominator: Current Ratio 1 = Current ratio 1 0 to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 0 to 1 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 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected. (3) Choose Numerator: Days' Sales Uncollected Choose Denominator: x Days = Days Sales Uncollected 1 Days sales uncollected 1 0 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 Intermedlate calculations.) 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 & Reg 9 Reg 10 Reg 11 Compute the inventory turnover. Inventory Turnover Choose Denominator: Choose Numerator: 4 Inventory Turnover Inventory turnover 1 = 1 o times 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 Rea 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Choose Numerator: Days' Sales in Inventory. Choose Denominator: Days 1 #1 Days' Sales in Inventory Days' sales in inventory 0 days 1 Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned + Times interest earned + 1 O times Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Rea 4 Reg 5 Reg 6 Reg 7 Req 8 Reg 9 Req 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: 1 = Profit margin ratio Profit margin ratio 0 % 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 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover Choose Numerator: 1 Choose Denominator: Total Asset Turnover = Total asset turnover 1 ol 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) retum 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 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on total assets. (10) Return on Total Assets Choose Denominator: Choose Numerator: 1 Return on Total Assets 1 Return on total assets 1 0 % 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 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Denominator Choose Numerator: = Return On Common Stockholders' Equity = Return on common stockholders' equity 0 %