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, $49,900; total assets, $179,400; common stock, $88,000; and retained earnings, $32,712) 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 $ 16,000 Accounts payable 8,480 Accrued wages payable 31,600 Income taxes payable 38,150 3,050 148,380 Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings $ 245,500 Total liabilities and equity 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 Required: $ 451,600 298,350 153,250 98,800 4,400 50,050 20,162 $ 29,888 $ 18,500 4,400 3,600 68,400 88,000 62,600 $ 245,500 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 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 = Current ratio 0 to 1 (2) Acid-Test Ratio Numerator: Denominator: = Acid-Test Ratio = Acid-Test Ratio = 0 to 1 < Req 1 and 2 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) Days' Sales Uncollected Numerator: Denominator: x Days = Days Sales Uncollected < Req 1 and 2 x Req 4 > = = Days sales uncollected 0 days 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) Inventory Turnover Denominator: Numerator: 1 1 = Inventory Turnover = Inventory turnover = 0 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) Numerator: Days' Sales in Inventory. Denominator: x Days = = x < Req 4 Req 6 > Days' Sales in Inventory Days' sales in inventory 0 days 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) Numerator: 1 Debt-to-Equity Ratio Denominator: = Debt-to-Equity Ratio = Debt-to-equity ratio 0 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 Numerator: Denominator: = Times Interest Earned + 1 I = = Times interest earned 0 times < Req 6 Req 8 > 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 Reg 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Numerator: 1 1 Denominator: Profit margin ratio Profit margin ratio 0% < 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) Numerator: 1 Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover 0 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) Return on Total Assets Numerator: Denominator: Return on Total Assets = Return on total assets = 0% 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 equity. (11) Return on Equity. Numerator: Denominator 1 1 < Req 10 = Req 11 > Return On Equity Return on equity 0%