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, $54,900; total assets, $229,400; common stock, $82,000; and retained earnings, $39,554.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 297,550 Gross profit 157,050 Operating expenses 98,700 Interest expense 4,100 Income before taxes 54,250 Income tax expense 21,854 Net income $ 32, 396 December 31 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet Liabilities and Equity $ 20,000 Accounts payable 8,200 Accrued wages payable 32,400 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,800 Common stock 152,300 Retained earnings $ 247,850 Total liabilities and equity $ 17,500 4,800 4,200 67,400 Prepaid expenses Plant assets, net Total assets 82,000 71,950 $ 247,850 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. Req 1 and 2 Req 3 Req Req 5 Req 6 Reg 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: 1 Choose Denominator: Current Ratio II Current ratio 1 to 1 (2) Acid-Test Ratio Choose Numerator: / Choose Denominator: Acid-Test Ratio / II Acid-Test Ratio to 1 Req 1 and 2 Req3 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: Days Choose Numerator: 1 Days Sales Uncollected 1 = Days sales uncollected 1 = days Req 1 and 2 Req 4 Req 1 and 2 Req Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the inventory turnover. (4) Inventory Turnover Choose Denominator: Choose Numerator: / Inventory Turnover Inventory turnover / / times Req3 Req 5 Check my work 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 Req3 Reg 4 Req 5 Reg 6 Req 7 Reg 8 Reg 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory Choose Denominator: Choose Numerator: Days = Days' Sales in Inventory Days' sales in inventory days Reg 4 Req 6 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: = Times Interest Earned + = Times interest earned + times Req 6 Req 8 > Complete this question by entering your answers in the tabs below. 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. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio = % Complete this question by entering your answers in the tabs below. 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 Numerator: Choose Denominator: Return on Total Assets Return on total assets % Req 9 Req 11 Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity 1 Choose Denominator Choose Numerator: Return On Common Stockholders' Equity 1 II Return on common stockholders' equity %