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, $219,400; common stock, $86,000; and retained earnings, $38,177.)

Problem 13-4A 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, $52,900; total assets, $219,400; common stock, $86,000; and retained earnings, $38,177.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450, 600 Cost of goods sold 298, 250 Gross profit 152,350 Operating expenses 99,300 Interest expense Income before taxes 48,350 Income tax expense 19,477 Net income $ 28,873 4,700 $ $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 20,000 Accounts payable 8,600 Accrued wages payable 32,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,700 Common stock 148,300 Retained earnings $ 244,350 Total liabilities and equity 18,500 4,000 3,400 65, 400 Prepaid expenses Plant assets, net Total assets 86,000 67,050 $ 244,350 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 Req 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Reg 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Choose Denominator: Current Ratio Current assets Current liabilities Current ratio 96,0501 $ 25,900 II 3.7 to 1 (2) Acid-Test Ratio Choose Numerator: Choose Denominator: Acid-Test Ratio Quick assets 1 Current liabilities Acid-Test Ratio 61,200 1 $ 25,900 = 2.4 to 1 Req 1 and 2 Req3 >