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. $199,400; common stock, $81,000; and retained earnings, $29,718.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,050 Gross profit 151,550 Operating expenses 99, 300 Interest expense 3,800 Income before taxes 48,450 Income tax expense 19,518 Net Income $ 28,932 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 8,000 Accounts payable 8,200 Accrued vages payable 34,000 Income taxes payable 32,150 Long-tern note payable, secured by mortgage on plant assets 3,100 Common stock 148,300 Retained earnings $ 233,750 Total liabilities and equity 18,500 3,000 3,200 69,400 Prepaid expenses Plant assets, net Total assets 81.000 58,650 $ 233,750 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.) Req 1 and 2 Req3 Req 4 Reg 5 Reg 8 Req9 Req 10 Req Compute the current ratio and acid-test ratio. Current Ratio Current Ratio Choose Numerator: Net sales . Current ratio O 6 IT (2) Choose Numerator: Choose Denominator: Ratio Acid-Test Ratio Req 1 and 2 Reg 3 Req 4 Reg 5 Req6 Reg 7 Req 8 Req9 Req 10 Req 11 Compute the days' sales uncollected. (3) Choose Numerator: Days' Sales Uncollected Choose Denominator: x Days Days Sales Uncollected Days sales uncollected o days Reg 1 and 2 Reg 4 > Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req 9 Req 10 Req 11 Compute the inventory turnover. Inventory Turnover 1 Choose Denominator: Choose Numerator: - Inventory Turnover Inventory turnover times Reg 3 Reqs > Req 1 and 2 Reg 1 and 2 Req3 Reg 3 Reg 4 Rega Reg 5 Rea 5 Req 6 Rea Reg 7 Rea 7 Reg 8 Rea 8 Req9 Req9 Req 10 Reg 10 Reg 11 Reg 11 Compute the days' sales in inventory. Days' Sales In Inventory Choose Denominator: Choose Numerator: * Days - Days' Sales In Inventory Days' sales in inventory o days Req4 Req6 > Req 1 and 2 Reg 3 Reg 4 Req5 Reg 6 Req 7 Reg 8 Reg 9 Req 10 Reg 11 Compute the debt-to-equity ratio. Debt-to-Equity Ratio 1 Choose Denominator Choose Numerator: = Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 Reg 2 and 2 Req3 Rega Rea S Rego Red > Rege Real Reg 10 Reg 11 Compute the times interest earned Times Interest Earned Choose Denominator: Choose Numerator: - - Times Interest Earned Times interest earned 0 times [ Reg 6 Reg 8 > Req 1 and 2 Reg 3 REGA Reg 4 Reas Reg 5 Rego Reg 6 Rea> | Rega Reg 7 Reg 8 Rea Req9 Reg 10 Rea 10 Rea 11 Reg 11 Compute the profit margin ratio. Profit Margin Ratio 'Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio Req7 Req9 > Req 1 and 2 Req3 Reg4 Req5 Reg 6 Req 7 Reg 8 Req 9 Req 10 Req 11 Compute the total asset turnover. Total Asset Turnover Choose Denominator: Choose Numerator: - = Total Asset Turnover Total asset turnover O times Req8 Req 10 > Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reas Rea> Req 7 Rea Req8 Rega Reg 9 Rea 10 Reg 10 Reais Reg 11 Compute the return on total assets. (10) Return on Total Assets Choose Denominator: Choose Numerator: Return on Total Assets Return on total assets = 0 % Req 1 and 2 Req3 Req 4 Rea 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity 1 Choose Denominator i - Return On Common Stockholders' Equity - Return on common stockholders' equity