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, $259,400; common stock, $81,000; and retained earnings, $45,026.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 452,600 297,650 154,950 99,400 4,100 51,450 20,726 $ 30,724 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 $ 14,000 Accounts payable Income taxes payable Liabilities and Equity $ 16,500 8,800 Accrued wages payable 4,400 29,600 3,500 36,150 Long-term note payable, secured by mortgage on plant assets 63,400 2,700 Common stock 81,000 153,300 $244,550 Retained earnings 75,750 Total liabilities and equity $ 244,550 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.) 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.) 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) Choose Numerator: Current Ratio Choose Denominator: = Current Ratio = Current ratio = to 1 (2) Acid-Test Ratio Choose Numerator: Choose Denominator: = Acid-Test Ratio Req 1 and 2 = Acid-Test Ratio = to 1 Req 3 > 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 days' sales uncollected. (3) Choose Numerator: Days' Sales Uncollected Choose Denominator: x Days 1 x < Req 1 and 2 Days Sales Uncollected = Days sales uncollected days x = Req 4 > 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 inventory turnover. (4) Choose Numerator: Inventory Turnover Choose Denominator: = Inventory Turnover = Inventory turnover = times Req 3 Req 5 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 days' sales in inventory. (5) Days' Sales in Inventory Choose Numerator: Choose Denominator: X Days = Days' Sales in Inventory 1 X = Days' sales in inventory 1 X = days Req 4 Req 6 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 debt-to-equity ratio. (6) Choose Numerator: 1 Debt-to-Equity Ratio Choose Denominator: = Debt-to-Equity Ratio = Debt-to-equity ratio = to 1 Req 5 Req 7 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 times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: + + < Req 6 Req 8 > Times Interest Earned = Times interest earned = times 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 profit margin ratio. (8) Choose Numerator: 1 Profit Margin Ratio Choose Denominator: = Profit margin ratio = Profit margin ratio = Req 7 Req 9 > % 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 total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: = Total Asset Turnover = II Total asset turnover times < Req 8 Req 10 > 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 return on total assets. (10) Choose Numerator: Return on Total Assets Choose Denominator: = Return on Total Assets = Return on total assets < Req 9 Req 11 > % 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 return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity Choose Denominator < Req 10 Req 11 = Return On Common Stockholders' Equity = Return on common stockholders' equity %