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, 2016, were inventory, $48,900, total assets, $209,400, common stock, $85,000; and retained earnings, $37,381.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net inccme $448,688 298,45 159,158 99,408 4,508 46,258 18,631 $27,619 CABOT CORPORATION Balance Sheet December 31, 2817 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) * Merchandise inventory Liabilities and Equity 5 14,80 Accounts payable 8,280 Accrued ages payable 5 17,500 4,400 4,700 31,400 Income taxes payable 7,800 32,158 Long-term note payable, secured by 67,480 mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,950 Common stock 148,300 Retained earnings 85,800 65,806 244 , 000 244,88 Total liabilities and equity These are short-term notes receivable arising from customer (trade) sales. Required Compute the following: ) current ratio, (2) acid-test ratio. (3) days' sales uncollected, (4) Inventory turnover, (5) days' sales in inventory, 6) debt to equity ratio, times interest earned, (8 profit margin ratio, 9 total asset turnover, O return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)