Problem 13-4A 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, $50,900; total assets, $249,400; common stock, $81,000; and retained earnings, $38,897.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 449,600 Cost of goods sold 297,150 Gross profit 152, 450 Operating expenses 99,600 Interest expense 4,700 Income before taxes 48,150 Income tax expense 19,397 Net income $ 28,753 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 18,000 Accounts payable 8,000 Accrued wages payable 30,000 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 149,300 Retained earnings $ 242,350 Total liabilities and equity 16,500 4,600 3,200 69,400 Prepaid expenses Plant assets, net Total assets 81,000 67,650 $ 242,350 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 Req 5 Reg 6 Req 7 Req 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: / Choose Denominator: Current Ratio / = Current ratio / = to 1 (2) Acid-Test Ratio Choose Numerator: 1 Choose Denominator: = Acid-Test Ratio / = Acid-Test Ratio / II to 1