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, $55,900; total assets, $189,400; common stock, $89,000; and retained earnings, $33,378.) CABOT CORPORATION Income Statement For Year Ended December 31, 2018 Sales $ 455, 600 Cost of goods sold 296,850 Gross profit 158,750 Operating expenses 98,700 Interest expense 4,500 Income before taxes 55,550 Income tax expense 22,378 Net income $ 33,172 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2018 Liabilities and Equity $ 20,000 Accounts payable 9,200 Accrued wages payable 32,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 150,300 Retained earnings $ 247, 150 Total liabilities and equity $ 16,500 4,800 2,900 Prepaid expenses Plant assets, net Total assets 67,400 89,000 66,550 $ 247,150 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. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. Current Ratio Choose Numerator: 1 Choose Denominator: = | = 2018: 11 = Current Ratio Current ratio 0 to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: = = Acid-Test Ratio Acid-Test Ratio 0 to 1 2018: Reg 1 and 2 Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 1 and 2 Reg 3 Req 3 Reg 4 Reg 4 Reg 5 Req5 Reg 6 Rego Reg 7 Reg? Req 8 Req8 Req 9 Reg. Req 10 Reg 10 Reg 11 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected 1 Choose Denominator: x Days Choose Numerator: = Days Sales Uncollected Days sales uncollected 0 days 2018: 1 X Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the inventory turnover. (4) Inventory Turnover 7 Choose Denominator: Choose Numerator: = = Inventory Turnover Inventory turnover 0 times 2018: Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 4 Reg 4 Reg 5 Reqs Req 6 Rego Req 7 Reg? Reqs Reg 11 Req 8 Reg 9 Req9Reg 10 Req 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory I Choose Denominator: x Days Choose Numerator: = Days' Sales in Inventory = Days' sales in inventory = | 0 days 2018: x Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reas Reg 5 Reg 6 Rego Reg 11 Rea> | Rego Reg 8 Req 7 Rego Reg 9 Reg 10 Reg 11 Compute the times interest earned. Times Interest Earned Choose Denominator: Choose Numerator: = Times Interest Earned = Times interest earned 2018: 0 times Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Req 7 Reg 8 Reg 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio 7 Choose Denominator: Choose Numerator: = = Profit margin ratio Profit margin ratio 2018: 0 % Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Req5 Req 6 Rego Reg 7 Req7 Req 8 Rege | Rega Reg 9 Reg 10 Req 10 Reg 11 Reg 11 | Compute the total asset turnover. (9) Total Asset Turnover Choose Denominator: Choose Numerator: 7 = = Total Asset Turnover Total asset turnover 2018: 0 times 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 Req 8 Reg 9 Reg 10 Req 11 Compute the return on total assets. (10) Return on Total Assets I Choose Denominator: = Choose Numerator: Return on Total Assets Return on total assets 0 % 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 Reg 7 Reg 8 Reg 9 Reg 10 Req 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 0 % 2018: