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, $53,900; total assets, $189,400; common stock. $85,000; and retained earnings, $36,433.) ces CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $455,600 Cost of goods sold 298,150 Gross profit 157,450 Operating 98,900 expenses Interest expense 4,600 Income before 53,950 taxes Income tax 21,733 expense Net income $ 32,217 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 12,000 Accounts payable 9,000 Accrued wages payable $ 19,500 3,800 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory s 31,200 Income taxes payable 2,900 40,150 Long-term note payable, 63,400 secured by mortgage on plant assets 2,600 Common stock 85,000 148,300 Retained earnings 68,650 Total liabilities and $243,250 $243,250 equity Prepaid expenses Plant assets, net Total assets 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. Reg 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req8 Req9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Choose Numerator: = Current Ratio Denominator: Current ratio to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: 1 = Acid-Test Ratio Acid-Test Ratio to 1 Reg 3 > Complete this question by entering your answers in the tabs below. Reg 10 Req 11 Reg 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: Choose Denominator: = Inventory Turnover = Inventory turnover 7 times Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Reg 9 Req 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory. Choose Choose Numerator: 1 Days' Sales in x Days = Denominator: Inventory / Days' sales in inventory days 11 Complete this question by entering your answers in the tabs below. Req 8 Req 9 Reg 10 Req 11 Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Reg 7 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Numerator: | Choose Denominator: = 1 / Debt-to-Equity Ratio Debt-to-equity ratio to 1 Complete this question by entering your answers in the tabs below. Req 6 Req7Req8 Req 9 Req 10 Reg 11 Req 1 and 2 Reg 3 Req 4 Req 5 Compute the times interest earned. (7) Choose Numerator: Times Interest Earned Choose 1 Denominator: Times Interest Earned Times interest earned time Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Reg 5 Req 6 Req 7 Req8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Numerator: 1 Choose Denominator: Profit margin ratio Profit margin ratio 1 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. (9) Total Asset Turnover 1 Choose Denominator: Choose Numerator: Total Asset Turnover Total asset turnover times 1 Complete this question by entering your answers in the tabs below. Req 6 Req 7 Reg 8 Req 1 and 2 Req3 Req 4 Reg 5 Compute the return on total assets. Reg 9 Reqnio Req 11 Return on Total Assets (10) Choose Numerator: | Choose Denominator: = Return on Total Assets Return on total assets = = % Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Numerator: Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity