Problem 17-4A 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, $53,900; total assets, $209,400, common stock, $83,000; and retained earnings, $52,511.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 449,600 Cost of goods sold 296,950 Gross profit 152,650 Operating expenses 98,900 Interest expense 4,200 Income before taxes 49,550 Income tax expense 19,961 Net income $ 29,589 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 22,000 Accounts payable 9,600 Accrued wages payable 29,400 Income taxes payable 42,150 Long-tern note payable, secured by mortgage on plant assets 2,750 Common stock 153,300 Retained earnings $ 259,200 Total liabilities and equity $ 18,500 4.000 3,200 68,400 83,000 82, 100 $ 259,200 Prepaid expenses Plant assets, net Total assets nursales in Inventory Help 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 Req8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. Current Ratio Choose Denominator: Choose Numerator: 1 Current Ratio Current ratio to 1 1 Acid-Test Ratio 1 Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio to 1 / Rog 1 and Req3 > 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 (7) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 4 Reg 5 Reg 6 Reg 1 and 2 Reg 3 Compute the days' sales uncollected Reg 7 Req8 Reg 9 Reg 10 Reg 11 (3) Choose Numerator: Days' Sales Uncollected Choose Denominator: Days / Days Sales Uncollected - Days sales uncollected days Total liabilities and equity $ 259,200 ints 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. 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.) Book Complete this question by entering your answers in the tabs below. Print Reg 4 Regs Req6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Feferences Req 1 and 2 Req3 Compute the inventory turnover. (4) Inventory Turnover Choose Denominator: Choose Numerator: Inventory Turnover = Inventory turnover times 1 Help Her Go inventory Prepaid expenses plant assets, bet Total assets Check my work Long-ter note pays. Ces by mortgage os plantas 2.750 Commen ock 153.300 Betained earning $ 259,200 Total liabilities and quity 33.000 02.100 Required: Compute the following: (1) current ratio (2) acio-test ratio (3) days sales uncollected, (4) Inventory turnover (5) des sales in inventory (6) debt-to-equity ratio) times interest earned. (3) profit margin ratio (9) total asset turnover (10) return on ossets, and return on common stockholders' equity (Do not round intermediate calculations) Complete this question by entering your answers in the tabs below. Regs Reg 6 Meg? Reg Re9 Rea 1 and 2 Req Reg4 Compute the days' sales in Inventory RQ10 (5) Choose Numerator Das Sales In Inventory Choose Denominator Days 1 Day's Intory Days' sale in very days 1 x Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover (5) days soles 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 Reqs Req6 Reg 7 Req8 Reg 5 Reg 10 RAG 11 Compute the debt-to-equity ratio, (6) Choose Numerator: Debt-to-Equity Ratio Choose Denominator 1 1 Debt-to-Equity Ratio Debt-to-equity ratio to 1 12) 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 (1) return on common stockholders' equity. (Do not round intermediate calculations.) BOOK Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 5 Reg 6 Rea 7 Req8 Reg 9 Reg 10 Reg 11 Reg 3 Reg1 Compute the times interest eamed tences (7) Times Interest Larred Choose Denominator Choose Numerator Times Interest Earned Times interesteamed times Complete this question by entering your answers in the tabs below. Reg 11 Reg 9 Reg 10 Reg 7 Reg 8 Reg 6 Reg 4 Reg 5 Req3 Reg 1 and 2 Compute the total asset turnover. (9) Total Asset Turnover Choose Denominator: 1 Choose Numerator: Total Asset Turnover Total asset turnover 1 times 1 Reg 10 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Reg 8 Reg 9 Redio Reg 11 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets Choose Denominator: 1 1 Return on Total Assets + Return on total assets 1 % 5 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, 19) total asset turnover,00) return on total assets, and (1) return on common stockholders' equity (Do not round intermediate calculations.) Boot Complete this question by entering your answers in the tabs below. Print Reg 1 and 2 Reg Re6 Rea? Re Reg Reg 10 Red 11 Botences Reg 3 Reg 4 Compute the return on common stockholders' eculty Return on Commen Stockholders County Choose Dennar Choose Numerator: - Return On Common Stockholders' Equity Return on common stockholderswouly Problem 17-4A 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, $53,900; total assets, $209,400, common stock, $83,000; and retained earnings, $52,511.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 449,600 Cost of goods sold 296,950 Gross profit 152,650 Operating expenses 98,900 Interest expense 4,200 Income before taxes 49,550 Income tax expense 19,961 Net income $ 29,589 Assets Cash Short-term investments Accounts receivable, net Merchandise Inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 22,000 Accounts payable 9,600 Acerued wages payable 29,400 Income taxes payable 42,150 Long-tern note payable, secured by mortgage on plant assets 2,750 Common stock 153,300 Retained earnings $ 259,200 Total liabilities and equity $ 18,500 4,000 3,200 68,400 83,000 82,100 $ 259,200 Prepaid expenses Plant assets, net Total assets our sales in inventory