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 Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 10,000 Accounts payable $ 17,500 8,480 Accrued wages payable 3,200 33,700 Income taxes payable 3,300 32,150 Long-term note payable, secured by mortgage on plant assets 63,400 2,650 153,300 Common stock 90,000 Retained earnings 62,800 $ 240,200 Total liabilities and equity $ 240,200 Sales For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 448,600 297,250 151,350 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 current ratio and acid-test ratio. (1) Numerator: 1 Current Ratio Denominator: = Current Ratio = Current Ratio = 0 to 1 (2) Acid-Test Ratio Numerator: I Denominator: = Acid-Test Ratio = Acid-Test Ratio = 0 to 1 < Req 1 and 2 Req 3 >