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, $199,400; common stock, $86,000; and retained earnings, $41,269.) CABOT CORPORATION Income Statement For Year Ended Decenber 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes 453,600 298,550 155, 050 98,600 3,900 52,550 21,169 $ 31,381 Net incone CABOT CORPORATION Balance Sheet Decenber 31, 2017 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory Liabilities and Equity 14,000 Accounts payable 17,500 4,800 4,400 8,400 Accrued wages payable 31,000 Income taxes payable 6,000 8,150 Long-term note payable, secured by66,400 mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,900 Common stock 151,300 Retained earnings s 251,750 Total liabilities and equity 86,000 2.650 $ 251,750 These are short-term notes receivable arising from customer (trade) sales Compute the following: (0 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 () return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and Req 3 Req 4 Req 5 Req 6 Req 7 Re 8 Re 9 Req 10 Req 11 3 Compute the current ratio and acid-test ratio Current Ratio Req 1 and Req 3 Req 4 Req 5 Req 6 Req 7Req 8Req 9 2 Compute the current ratio and acid-test ratio. Current Ratio Choose Denominator: Choose Numerator: I Current Rati | Current ratio = 2017 to 1 Acid-Test Ratio Choose Denominator: Choose Numerator:l Acid-Test Ratio | Acid-Test Ratio 2017 to 1 K Req 1 and 2 Req 3 > Req 1 and 2 Compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: x | Days | Days Sales Uncollected | Choose Numerator: I | Days sales uncollected = 2017: days Req 1 and 2 Req 4 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7Req 8 Req 9 Compute the inventory turnover. Inventory Turnover Choose Denominator: Choose Numerator: / = Inventory Turnover - Inventory turnover 2017: times K Req 3 Req5>