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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

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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, $49,900; total assets, $179,400; common stock, $85,000; and retained earnings, $37,004.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 $451,600 297,850 153,750 98,800 4,300 50,650 20,404 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes $ 30,246 Net income CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, $ 19,500 $ 14,000 Accounts payable 3,600 8,600 Accrued wages payable 3, 200 30,200 Income taxes payable net Notes receivable 4,e00 36,150 Long-term note payable, secured by (trade)* Merchandise inventory Prepaid expenses Plant assets, net 67,400 mortgage on plant assets 85,e0e 67, 250 $245,950 2,700 Common stock 150, 300 Retained earnings $245,950 Total liabilities and equity Total assets These are short-tern no receivable arising from customer (trade) sales. eequired: Compure tie 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. Reg 1 and 2 Reg 4 Reg 3 Reg 5 Reg 10 Reg 6 Req 7 Reg 9 Reg 11 Reg 8 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Choose Denominator: Current Ratio Current ratio %3D 2017: to 1 %3D Acid-Test Ratio / Choose Denominator: (2) Choose Numerator: Acid-Test Ratio Acid-Test Ratio 2017: to 1 %3D Reg1 and 2 Req 3 > ...

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