Problem 17-4A (Algo) 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, $52,900; total assets, $199,400; common stock, $88,000; and retained earnings, $40,137.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 18,000 Accounts payable 8,000 Accrued wages payable 31,800 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 2,650 Common stock 153,300 Retained earnings $ 243,900 Total liabilities and equity $ 15,500 3,200 3,700 62,400 88,000 71,100 $ 243,900 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452, 600 Cost of goods sold 297,450 Gross profit 155, 150 Operating expenses 99, 100 Interest expense 4,200 Income before taxes 51,850 Income tax expense 20,887 Net income $ 30,963 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 equity. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Numerator: 1 Denominator: Current Ratio 1 = Current ratio 0 to 1 1 (2) Acid-Test Ratio Numerator: 1 Denominator: Il 1 Acid-Test Ratio Acid-Test Ratio 1 1 0 to 1