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. $55.900: total assets. $169.400; common stock. $86.000; and retained earnings. $35.007.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 10,880 Accounts payable $ 17,500 Short-term investments 9,280 Accrued wages payable 3,480 Accounts receivable, net 31,282 Income taxes payable 4,500 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses 2,880 Common stock 86,00 Plant assets, net 153,380 Retained earnings 65,85e Total assets $ 242,650 Total liabilities and equity $ 242,650 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,650 Gross profit 154,95 Operating expenses 99,480 Interest expense 3,980 Income before taxes 51,650 Income tax expense 20,897 Net Income $ 30,843 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 () 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. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Req9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Denominator Numerator. = 1 Current Ratio Current ratio to 1 1 = (2) Acid-Test Ratio Denominator: Numerator: = 1 = Acid-Test Ratio Acid-Test Ratio to 1 1 Req 1 and 2 Req3 > Reg 1 and 2 Req3 Reg 4 Reg 5 Rego Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected (13) Days Salts Uncollected 1 Denominator: Numerator: Days Days Sales Uncollected Days sales uncolected days Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req? Reqs Reg 9 Reg 10 Reg 11 Compute the inventory turnover. Numerator: Inventory Turnover Denominator: = 1 1 Inventory Turnover Inventory turnover times Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req? Reqs Req9 Reg 10 Req11 Compute the days' sales in inventory (5) Days Sales in Inventory Denominator: Numerator: * Days = = Days' Sales in Inventory Days' sales in Inventory days 1 X Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req8 Req9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Denominator: Numerator: = Debt-to-Equity Ratio Debt-to-equity ratio to 1 1 = Reqs Req7 > Rea 1 and 2 Reg 3 Reg 4 Req5 Regs Reg 7 Rega Reg 9 Reg 10 Reg 11 Compute the times interest earned. 17) Numerator Times Interest Earned 1 Denominator: 1 Times Interest Earned Times interest earned mes Reg 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Regs Req9 Reg 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio Denominator: Numerator: 1 1 1 Profit margin ratio Profit margin ratio Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover Denominator: Numerator: 1 Total Asset Turnover Total asset tumover times 1 Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req8 Req9 Reg 10 Reg 11 Compute the return on total assets. (10) Retum on Total Assets Denominator: Numerator: 1 = Return on Total Assets Return on total assets % 1 Reg 1 and 2 Reg 3 Req4 Reg 5 Req6 Req7 Req Req Reg 10 Req11 Compute the return on equity, (11) Return on Equity Denominator Numerator: Return On Equity Return on equity %