Req 1- 11

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total assets, $199,400; common stock, $88,000; and retained earnings, $45,187.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 453,600 Cost of goods sold 298,050 Gross profit 155,550 Operating expenses 99,400 Interest expense 4,300 Income before taxes 51,850 Income taxes 20,887 Net income $ 30,963 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 16,000 Accounts payable 8,200 Accrued wages payable 32,000 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,600 Common stock 153,300 Retained earnings $ 257,250 Total liabilities and equity $ 18,500 3,000 3,200 5,000 68,400 Prepaid expenses Plant assets, net Total assets 88,000 76,150 $ 257,250 * 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 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 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Reg 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: 1 Current Ratio Choose Denominator: Current liabilities = Current Ratio Current assets 1 = Current ratio 2017: 1 0 to 1 (2) Choose Numerator: Acid-Test Ratio Choose Denominator: / Current liabilities = Acid-Test Ratio = Acid-Test Ratio Quick assets 2017: 0 to 1