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, $55,900; total assets, $219,400; common stock, $83,000; and retained earnings, $33,187.)

Problem 13-4A Calculating financial statement ratios LO P3 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, $55,900; total assets, $219,400; common stock, $83,000; and retained earnings, $33,187) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 453,600 Cost of goods sold 298, 250 Gross profit 155, 350 Operating expenses 98,600 Interest expense 4,900 Income before taxes 51,850 Income tax expense 20,887 Net income $ 30,963 S Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 8,000 Accounts payable 8,600 Accrued wages payable 31,200 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 152,300 Retained earnings $ 239, 150 Total liabilities and equity 15,500 2,800 3,300 70,400 Prepaid expenses Plant assets, net Total assets 83,000 64, 150 $ 239, 150 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 Req3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) ) Choose Numerator: Current Ratio 1 Choose Denominator: / Current Ratio Current ratio / = to 1 (2) ) Acid-Test Ratio 1 Choose Denominator: Choose Numerator: = = Acid-Test Ratio Acid-Test Ratio to 1 1 = Reg 1 and 2 Req3 > 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 4 Req 5 Req 6 Req 7 Reg 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 II = Days sales uncollected / = days n common stockholders' equity. (Do not round intermediate calculations.) 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 Reg 8 Req 9 Req 10 Req 11 Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: 1 Choose Denominator: = Inventory Turnover Inventory turnover = / II times Req3 Req 5 Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Req 7 Reg 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory. Choose Denominator: Choose Numerator: Days = 1 x = Days' Sales in Inventory Days' sales in inventory days / 11 = Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Numerator: Choose Denominator: = Debt-to-Equity Ratio Debt-to-equity ratio / / = to 1 Req 1 and 2 Req 3 Reg 4 Reg 5 Req 6 Req 7 Reg 8 Req 9 Req 10 Reg 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: I Choose Denominator: Times Interest Earned + 1 = Times interest earned + 1 = 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 common stockholders' equity. (11) Return on Common Stockholders' Equity 1 Choose Denominator Choose Numerator: = Return On Common Stockholders' Equity Return on common stockholders' equity 1 II = / = %