Problem 13-4A (Static) Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were Inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 10,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 8,400 Accrued wages payable 33,700 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,650 153,300 Common stock Retained earnings Total assets $ 240,200 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 448,600 297,250 $ 17,500 3,200 3,300 63,400 90,000 62,800 $ 240,200 Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: 151,350 98,600 4,100 48,650 19,598 $ 29,052 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 equity. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on equity. (11) Numerator: 1 Return on Equity. Denominator 1 I < Req 10 = Req 11 > Return On Equity Return On Equity 0%