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, $179,400; common stock, $88,000; and retained earnings, $36,258.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement 31,800 Income taxes payable $ 18,000 Accounts payable $ 16,500 8,400 Accrued wages payable 5,000 3,600 32, 150 Long-term note payable, secured by mortgage on plant assets Common stock 66,400 88,000 65,250 $ 244,750 3,100 151,300 Retained earnings $244,750 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: $ 449,600 297,850 151,750 99,100 4,100 48,550 19,558 $ 28,992 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.) Compute the current ratio and acid-test ratio. (1) Numerator: Current Ratio Denominator: Current Ratio = Current ratio to 1 (2) Acid-Test Ratio Numerator: Denominator: Acid-Test Ratio = Acid-Test Ratio to 1 Compute the days' sales uncollected. (3) Numerator: Days' Sales Uncollected 1 Denominator: X Days Days Sales Uncollected Days sales uncollected days Compute the inventory turnover. (4) Numerator: Inventory Turnover Denominator: Inventory Turnover = Inventory turnover times (5) Numerator: Days' Sales in Inventory Denominator: 1 < Req 4 x Days = = Req 6 > Days' Sales in Inventory. Days' sales in inventory days Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio. Numerator: Denominator: Debt-to-Equity Ratio Debt-to-equity ratio to 1 Compute the times interest earned. (7) Numerator: Times Interest Earned + Denominator: Times Interest Earned Times interest earned times Compute the profit margin ratio. (8) Numerator: Profit Margin Ratio Denominator: = Profit margin ratio Profit margin ratio % Compute the total asset turnover. (9) Numerator: Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover times < Req 8 Req 10 > Compute the return oh total assets. (10) Numerator: Return on Total Assets Denominator: Return on Total Assets Return on total assets % Compute the return oh equity. (11) Numerator: Return on Equity Denominator