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, $50,900; total assets, $219,400; common stock, $86,000; and retained earnings, $39,951.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2017
Sales	$	450,600
Cost of goods sold		298,050
Gross profit		152,550
Operating expenses		98,900
Interest expense		4,000
Income before taxes		49,650
Income taxes		20,001
Net income	$	29,649

CABOT CORPORATION Balance Sheet December 31, 2017
Assets				Liabilities and Equity
Cash	$	12,000		Accounts payable	$	15,500
Short-term investments		8,800		Accrued wages payable		3,400
Accounts receivable, net		31,000		Income taxes payable		3,500
Notes receivable (trade)*		4,500
Merchandise inventory		34,150		Long-term note payable, secured by mortgage on plant assets		64,400
Prepaid expenses		2,650		Common stock		86,000
Plant assets, net		149,300		Retained earnings		69,600
Total assets	$	242,400		Total liabilities and equity	$	242,400

* 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 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.)

(1)	Current Ratio
	Choose Numerator:	/	Choose Denominator:	=	Current Ratio
		/		=	Current ratio
2017:		/		=	0	to 1
(2)	Acid-Test Ratio
	Choose Numerator:	/	Choose Denominator:	=	Acid-Test Ratio
		/		=	Acid-Test Ratio
2017:		/		=	0	to 1

(3)	Days' Sales Uncollected
	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days Sales Uncollected
		/		x		=	Days sales uncollected
2017:		/		x		=	0	days

4)	Inventory Turnover
	Choose Numerator:	/	Choose Denominator:	=	Inventory Turnover
		/		=	Inventory turnover
2017:		/		=	0	times

(5)	Days Sales in Inventory
	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days Sales in Inventory
		/		x		=	Days sales in inventory
2017:		/		x		=	0	days

(6)	Debt-to-Equity Ratio
	Choose Numerator:	/	Choose Denominator:	=	Debt-to-Equity Ratio
		/		=	Debt-to-equity ratio
2017:		/		=	0	to 1

(7)	Times Interest Earned
	Choose Numerator:			/	Choose Denominator:	=	Times Interest Earned
		+		/		=	Times interest earned
2017:		+		/		=	0	times

(8)	Profit Margin Ratio
	Choose Numerator:	/	Choose Denominator:	=	Profit margin ratio
		/		=	Profit margin ratio
2017:		/		=	0	%