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, $47,900; total assets, $209,400; common stock, $87,000; and retained earnings, $18,852.) ORPORAT ION Income Stat ement For Current Vear Ended December 31 Sales $ 298, 4500 447, 600 Cost of goods sold Gross profit Oper ating expenses 149, 150 98, 500 Interest expense 4, 100 Income before taxes 46, 550 18, 752 Income ta expense $ Net income 27, 798 CABOT CORPORATION Bal ance Sheet December 31 Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Assets Cash $ $ 8, 000 19, 500 inves tments Accounts receivable, net Merchandise inventory Shor t-term 4, 600 4, 300 9, 200 29, 200 32, 150 72, 400 Prep aid expenses 2, 600 Common stock 87, 000 Retained earnings Plant assets, net 153, 300 46, 650 Total liabilities and equi ty Total assets $ $ 234, 450 234, 450 Required: Compute the following: () 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 Req 3 Req 4 Req 6 Req 11 Req 5 Req 7 Req 8 Req 9 Req 10 Compute the current ratio and acid-test ratio. Current Ratio (1) Current Ratio Choose Numerator: Choose Denominator: / Current ratio to 1 Acid-Test Ratio (2) Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-Test Ratio to 1 Req 4 Req 6 Req 7 Req 11 Req 1 and 2 Req 3 Req 5 Req 8 Req 9 Req 10 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Numerator: Choose Denominator: x Days Sales Uncollected Days Days sales uncollected days Req 3 Req 4 Req 6 Req 8 Req 9 Req 1 and 2 Req 5 Req 7 Req 10 Req 11 Compute the inventory turnover. Inventory Turnover (4) Choose Numerator: Inventory Turnover Choose Denominator: Inventory turnover times Req 6 Req 1 and 2 Req 3 Req 4 Req 5 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. Days' Sales in Inventory (5) Choose Numerator: Choose Denominator: Days Days' Sales in Inventory Days' sales in inventory X days Req 5 Req 10 Req 1 and 2 Req 3 Req 4 Req 6 Req 7 Req 8 Req 9 Req 11 Compute the debt-to-equity ratio. Debt-to-Equity Ratio (6) Choose Denominator: Choose Numerator: Debt-to-Equity Ratio Debt-to-equity ratio to 1 Req 5 Req 10 Req 1 and 2 Req 3 Req 4 Req 6 Req 7 Req 8 Req 9 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned times + 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. Profit Margin Ratio (8) Profit margin ratio Choose Numerator: Choose Denominator: Profit margin ratio Req 5 Req 1 and 2 Req 3 Req 4 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. Total Asset Turnover (9) Choose Numerator: Choose Denominator: Total Asset Turnover Total asset turnover times 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 Choose Denominator: Choose Numerator: Return on Total Assets Return on total assets 26 Req 1 and 2 Req 3 Req 11 Req 7 Req 4 Req 5 Req 6 Req 8 Req 9 Req 10 Compute the return on common stockholders' equity. Return on Common Stockholders' Equity (11) Choose Numerator: Choose Denominator Return On Common Stockholders' Equity =Return on common stockholders' equity