Problem 17-4A 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, 2014, were inventory, $50,900; total assets, $169,400; common stock, $85,000; and retained earnings, $36,057.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales 456,600 297,450 Cost of goods sold Gross profit 159,150 99,200 Operating expenses Interest expense 4,700 Income before taxes 55,250 Income taxes 22,257 32,993 Net income CABOT CORPORATION Balance Sheet December 31, 2015 Assets Liabilities and Equity 10,000 18,500 Cash Accounts payable Short-term investments 8,600 Accrued wages payable 29,600 Income taxes payable 7,500 Long-term note payable, secured 3,400 Accounts receivable, net 3,800 Notes receivable (trade) Merchandise inventory 40,150 by mortgage on plant assets 71,400 Common stock Prepaid expenses 3,000 85,000 Plant assets, net 152,300 Retained earnings 69.050 Total assets 251,150 Total liabilities and equity $251,150 These are short-term notes receivable arising from customer (trade) sales. 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.) (1) Current Ratio Choose Numerator: Choose Denominator: Current Ratio Current ratio Current assets Current liabilities 2015: 98.850 25.700 E 38 to 1