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, $47,900; total assets, $189,400, common stock, $87,000, and retained earnings, $37,874.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 449,600 Cost of goods sold 298,550 Gross profit 151,050 Operating expenses 99,500 Interest expense 4,200 Income before taxes 47, 35e Income taxes 19,074 Net income $ 28.276 Return to q $ Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)" Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity 8,000 Accounts payable 8,200 Accrued wages payable 32,88e Income taxes payable 6,000 36,150 Long-term note payable, secured by mortgage on plant assets 2,800 Common stock 149,300 Retained earnings $ 243,250 Total liabilities and equity 16.500 3,8ee 4,400 65,40e Prepaid expenses Plant assets, net Total assets 87,eee 66,150 $ 243, 250 * These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inve (6) debt-to-equity ratio (7) times interest earned, (8) profit margin ratio. (9) total asset turnover (10) return on total assets, and (11) on common stockholders' equity. (Do not round intermediate calculations.) Roq 1 and 2 Req 1 and 2 Req3 Req3 Req 4 Reg4 Req5 Reg 5 Reg 6 Rego Req 7 Reg? Reg Req 8 Req 9 Req9 Req 10 Reg 10 Compute the days' sales uncollected. Choose Numerator: Days' Sales Uncollected Choose Denominator: Days = Days Sales Uncollected Days sales uncollected 2017: O days 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 Reg 8 Reg 9 Req Compute the inventory turnover. Choose Numerator: Inventory Turnover Choose Denominator: Inventory Turnover Inventory turnover 0 times 2017: Return to quest Complete this question by entering your answers in the tabs below. Req 1 and 2 Reog a and 2 Roa 3 Req3 Rega Reg 4 Reqs Reg 5 Reg 6 Rego Reg 7 Rea? Req 8 Raq e Req9 Rego Req 10 Roq 20 Reg 11 Roq 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory Choose Days Denominator: Days' Sales in Choose Numerator: Days' Sales in Inventory Days' sales in inventory 0 days 2017: Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 I Rego Reg 6 Reg 7 Rea? Regs Reg 8 Reg 9 Reqs Req 10 Req 10 Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Equity Ratio Choose Denominator: Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 2017: - Return to questi Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req3 Rega Reqs Reqs 2096 Reg 6 Reg 7 2097 Req8 Rego Roqg Reg 9 Req 10 Req 10 Req 11 209 11 Compute the times interest earned. Choose Numerator: Times Interest Earned Choose Denominator: Times Interest Earned Times interest eamed Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Reg 8 Req9 Req 10 Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio Choose Denominator: Profit margin ratio Profit margin ratio 2017: Req7 Req9> Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req3 Rega Reg 4 Req 5 Reas Rego Reg 6 Rea> Reg 7 Req8 Rega Reas Reg 9 Reg 10 Req1 Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: Total Asset Turnover Total asset turnover 0 times 2017: L = Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Req 5 Req6 Req 7 Req 8 Rea Req 10 Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: Total Asset Turnover Total asset turnover O times 2017:
