Problem 13-4A Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selo at December 31 of the prior year were inventory, $50,900; total assets, $209,400; common stock, $83,00 $54,315.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,550 Gross profit 155,050 Operating expenses 99,500 Interest expense 4,500 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 $ 20,000 Accounts payable 8,800 Accrued wages payable 33,200 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,450 Common stock 152,300 Retained earnings $ 254,900 Total liabilities and equity 17,500 3,600 3,600 62,400 Prepaid expenses Plant assets, net Total assets 83,000 84,800 $ 254,900 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. 1 Current Ratio Choose Denominator: Current liabilities Choose Numerator: Current assets - Current Ratio Current ratio 0 to 1 Acid-Test Ratio Choose Denominator: Choose Numerator: = Acid-Test Ratio Acid-Test Ratio 0 to 1 Reg 3 > 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Req7 Reg 8 Rega Req 10 Req 11 Compute the days' sales uncollected. Choose Numerator: Days' Sales Uncollected Choose Denominator: x Days Days Sales Uncollected Days sales uncollected 0 days ( Reg 1 and 2 Reg 4 > 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Red 4 Req5 Reg 6 Reg 7 Reg 8 Req9 Req 10 Req 11 Compute the inventory turnover. Choose Numerator: Inventory Turnover Choose Denominator: - Inventory Turnover Inventory turnover 0 times ( Reg 3 Reqs > 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reb 5 Reg 6 Req 7 Req8 Reg 9 Req 10 Req 11 Compute the days' sales in inventory. Days' Sales In Inventory. Choose Denominator: Choose Numerator: Days - Days' Sales in Inventory Days' sales in inventory 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 intermediate calculations.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Nog 7 Req8 Req 9 Req 10 Req 11 Compute the times interest earned. Times Interest Eamed 1 Choose Denominator: Choose Numerator: Times Interest Earned Times interest eamed O times Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req8 Req9 Req 10 Req 11 Compute the profit margin ratio. Profit Margin Ratio Choose Numerator: Choose Denominator: Profit margin ratio Profit margin ratio 0 % ( Req7 Req > Req 1 and 2 Req 3 Reg 4 Reg 5 Req 6 Req 7 Reg 8 Reg Req 10 Req 11 Compute the total asset turnover. Total Asset Turnover Choose Denominator: Choose Numerator: Total Asset Turnover Total asset turnover 0 times ( Req8 Req 10 > 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 1 and 2 Reg 3 Rega Reg4 Reas Reg 5 Rego Reg 6 Reg 7 Rea7 Req8 Reg 8 Req 9 Rega Req 10 Req 10 Reg 11 Reg 11 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets Choose Denominator: I Return on Total Assets Return on total assets 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Req5 Reg 6 Reg 7 Req 8 Req9 Req 10 Req 11 Compute the return on common stockholders' equity Return on Common Stockholders' Equity Choose Denominator Choose Numerator: Return On Common Stockho Equity Return on common stockholder