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, $179,400; common stock, $84,000, and retained earnings, $36,922) ed ok Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net nt Total assets ences CABOT CORPORATION Income Statement $ 8,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable. 8,800 Accrued wages payable 30,600 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 151,300 Retained earnings $ 239,400 Total liabilities and equity For Current Year Ended December 31 Sales $454,600 Cost of goods sold 297,550 Gross profit 157,050 Operating expenses 99,000 Interest expense 4,500 Income before taxes 53,550 Income tax expense 21,572 Net income $31,978 Required: $17,500 3,400 3,200 62,400 84,000 68,900 $ 239,400 ces Compute the current ratio and acid-test ratio.. (1) Numerator: Current Ratio Denominator: Current Ratio Current ratio 0 to 1 (2) Numerator: Acid Test Ratio Denominator: Acid-Test Ratio Add-Test Ratio Req3 > H ences Compute the days' sales in inventory. (5) Numerator: T Days' Sales in Inventory Denominator: Days Days' Sales in Inventory = Days' sales in inventory days Ask Compute the debt-to-equity ratio. Numerator: Debt-to-Equity Ratio Denominator: Print (6) eferences Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1