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, $179,400; common stock, $85,000; and retained earnings. $40,351.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 18,000 Accounts payable 8,200 Accrued wages payable 31,400 Income taxes payable $ 17,500 4,600 4,000 36,150 Long-term note payable, secured by mortgage on plant assets 2,680 Cormon stock 66,400 85,000 153,300 Retained earnings 72,158 $ 249,650 Total liabilities and equity $ 249,650 For Current Year Ended December 31 Sales Cost of goods sold Operating expenses Gross profit Interest expense Income before taxes Income tax expense Net income Required: $ 454,600 297,050 157,550 99,400 4,900 53,250 21,451 $ 31,799 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 equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Numerator: 1 Denominator: = Current Ratio = 1 Current ratio to 1 (2) Acid-Test Ratio Numerator: I Denominator: = Acid-Test Ratio = Acid-Test Ratio = to 1 < Req 1 and 2 Req 3 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Numerator: Denominator: Days = Days Sales Uncollected = Days sales uncollected x = days < Req 1 and 2 Req 4 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the inventory turnover. (4) Numerator: Inventory Turnover Denominator: I = = Inventory Turnover Inventory turnover times < Req 3 Req 5 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Numerator: I 1 Days' Sales In Inventory Denominator: < Req 4 x Day = Days' Sales In Inventory = Days' sales in inventory x = days Req 6 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Numerator: 1 1 1 Debt-to-Equity Ratio Denominator: = Debt-to-Equity Ratio Debt-to-equity ratio = to 1 < Req 5 Req 7 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Numerator: Denominator: = Times Interest Earned = Times interest earned = times < Req 6 Req 8 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Numerator: 1 1 Profit Margin Ratio Denominator: = Profit margin ratio = Profit margin ratio = < Req 7 Req 9 > (9) Total Asset Turnover Numerator: Denominator: = Total Asset Turnover = Total asset turnover = times < Req 8 Req 10 > (10) Return on Total Assets Numerator: Denominator: = Return on Total Assets = Return on total assets = % < Req 9 Req 11 > (11) Return on Equity Numerator: Denominator = Return On Equity = Return on equity = % < Req 10 Req 11 >