Problem 13-4A Calculation of financial statement ratios LO P3 Selected year-end financial statements of Cabot Corporation follow. All sales were on credit: selected balance sheet amounts at December 31, 2017, were inventory, $52,900; total assets, $219,400; common stock, $89,000, and retained earnings, $38,841.) CABOT CORPORATION Income Statement For Year Ended December 31, 2018 Sales $ 449,600 Cost of goods sold 297,150 Gross profit 152,450 Operating expenses 98,600 Interest expense 4,100 Income before taxes 49.750 Income tax expense 20.041 Net Income $ 29,709 ences $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2018 Liabilities and Equity $ 14,000 Accounts payable 9,400 recrued wages payable 30,000 Income taxes payable 38,150 Long-tern noto payable, secured by mortgage on plant as sota 3,000 Common stock 151,300 Retained earninga $ 245,850 Total liabilities and equity 15,500 4,800 4.600 Prepaid expenses Plant assets, net Total assets 63,400 89,000 68,550 $ 245,950 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req 6 Req 7 Req 8 Reg 9 Compute the current ratio and acid-test ratio. Current Ratio Choose Choose Numerator: Denominator 8. 91 1 = = Current Ratio Current ratio 2018: LI 12) Acid-Test Ratio Choose Choose Numerator. Denominator Acid-Test Ratio - Acid-Test Ratio 2018: Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 96 Reg 7 Reg 8 Reg 9 Req 1 Compute the days' sales uncollected Days' Sales Uncollected I Choose Denominator: * Choose Numerator: Days - Days Sales Uncollected Days sales uncollected 2018: x = days Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 5 Req 6 Req 7 Req 8 Req 9 Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: I Choose Denominator: - Inventory Turnover Inventory turnover times times 2018: - Tv Reas Req5 > 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 Compute the days' sales in inventory. (5) Days' Sales in Inventory. Choose Denominator: X Days Choose Numerator: - Days' Sales in Inventory Days' sales in inventory days 2018: Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 6 Reg 7 Reg 8 Reg 9 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Numerator: Choose Denominator: 11 2018: il- E - Debt-to-Equity Ratio Debt-to-equity ratio to 1 ( Req5 Req7 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 SReg 4 Req 5 Reg 6 Req 7 Reg 8 Req 9 Req 10 Compute the times interest earned. Times Interest Earned Choose Denominator: Choose Numerator: = Times Interest Earned Times interest earned 2018: times Req6 Req8 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Reg 7 Req 8 Reg 9 RE Compute the profit margin ratio. Profit Margin Ratio Choose Denominator: Choose Numerator: = Profit margin ratio Profit margin ratio 2018: Reg Req > Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req 8 Reas Reg 9 Rega Re Re Compute the total asset turnover. Total Asset Turnover Choose Denominator: Choose Numerator: - Total Asset Turnover Total asset turnover times 2018: Reg 10 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Reg 8 Req 9 Reg 10 Compute the return on total assets. (10) Return on Total Assets Choose Denominator: - Choose Numerator: Return on Total Assets Return on total assets 2018: 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 Reg 8 Req9Req 10 Reg 11 Compute the return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity Choose Denominator - Return On Common Stockholders' Equity - Return on common stockholders' equity 2018:
