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, $56,900; total assets, $209,400; common stock, $87,000; and retained earnings, $43,407) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 16,000 Accounts payable 9,400 Accrued wages payable 30,800 Income taxes payable 40, 150 Long-term note payable, secured by mortgage on plant assets 2,500 Common stock 154,300 Retained earnings $ 253, 150 Total liabilities and equity $ 18,500 4,600 4,400 64,400 87,000 74,250 $ 253, 150 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,650 Gross profit 154,950 Operating expenses 99,000 Interest expense 4,300 Income before taxes 51,650 Income tax expense 20,807 Net income $ 30,843 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 equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Compute the current ratio and acid-test ratio. (1) Current Ratio Numerator: 1 Denominator: = Current Ratio / Current ratio 1 = 0 to 1 (2) Acid-Test Ratio Denominator: Numerator: 1 = Acid-Test Ratio Acid-Test Ratio 0 to 1 1 Reg 1 and 2 Reg 3 > Compute the days' sales uncollected. (3) Days' Sales Uncollected 1 Denominator: Numerator: x Days Days Sales Uncollected 1 X Days sales uncollected 1 = o days Compute the inventory turnover. (4) Inventory Turnover Denominator: Numerator: 1 = = Inventory Turnover Inventory turnover 0 times Compute the days' sales in inventory. (5) Days' Sales in Inventory Denominator: Numerator: 1 X Days 1 Days' Sales in Inventory Days' sales in inventory o days / X = Req 4 Req 6 > Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Denominator: Numerator: 1 = / = Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 1 = Compute the times interest earned. (7) Times Interest Earned Numerator: 1 Denominator: = Times Interest Earned / = Times interest earned 1 = 0 times Compute the profit margin ratio. (8) Profit Margin Ratio Denominator: Numerator: 1 = / - Profit margin ratio Profit margin ratio 0 % 1 = Compute the total asset turnover. (9) Total Asset Turnover Denominator: Numerator: 1 = Total Asset Turnover Total asset turnover / = 1 = o times Compute the return on total assets. (10) Return on Total Assets Denominator: Numerator: 1 = Return on Total Assets = Return on total assets 1 1 = % Reg 9 Req 11 Compute the return on equity. (11) Return on Equity Denominator Numerator: Return On Equity Return on equity = = 0 %