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, $50,900; total assets, $189,400; common stock, $82,000; and retained earnings, $31,757.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 297,150 Gross profit 158,450 Operating expenses Interest expense 4,600 Income before taxes 55,250 Income tax expense 22,257 Net income 32,993 98,600 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 8,800 Accrued wages payable 30,200 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,700 Common stock 151,300 Retained earnings $ 243,150 Total liabilities and equity 17,500 4,600 3,900 70,400 Prepaid expenses Plant assets, net Total assets 82,000 64,750 $ 243, 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 Req 5 Req 6 Req 7 Reg 8 Req9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current assets Current Ratio 1 Choose Denominator: I Current liabilities 1 11 Current Ratio Current ratio 0 to 1 (2) Choose Numerator: Quick assets Acid-Test Ratio I Choose Denominator: 1 Current liabilities 1 Acid-Test Ratio Acid-Test Ratio 0 to 1 Req 1 and 2 Req3 > Req 1 and 2 Req 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req 9 Reg 10 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected 1 Choose Denominator: Days 1 Net sales Choose Numerator: Accounts Receivable, net Days Sales Uncollected Days sales uncollected 1 11 0 days Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Reg 8 Req 9 Req 10 Compute the inventory turnover. (4) Choose Numerator: Cost of goods sold Inventory Turnover 1 Choose Denominator: 1 Average inventory 1 = Inventory Turnover Inventory turnover 0 times = Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Reg 7 Req 8 Req 9 Req 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory. 1 Choose Denominator: 1 Cost of goods sold Choose Numerator: Merchandise inventory Days 11 Days' Sales in Inventory Days' sales in inventory 0 days / X Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Reg 9 Reg Compute the debt-to-equity ratio. (6) Choose Numerator: Total liabilities Debt-to-Equity Ratio I Choose Denominator: 1 Total equity Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 / II Req 1 and 2 Req3 Req 4 Reg 5 Req 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: = Income before tax + Interest expense Interest expense 1 1 Times Interest Earned Times interest earned 0 times + 11 Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 Req 9 Req 10 R Compute the profit margin ratio. (8) Choose Numerator: Net income Profit Margin Ratio 1 Choose Denominator: I Net sales 1 Profit margin ratio Profit margin ratio 0 % 11 Compute the total asset turnover. (9) Choose Numerator: Net sales Total Asset Turnover 1 Choose Denominator: 1 Average total assets 1 Total Asset Turnover Total asset turnover 0 times Compute the return on total assets. (10) Choose Numerator: Net income Return on Total Assets 1 Choose Denominator: 1 Average total assets Return on Total Assets Return on total assets 11 / 11 0 % Compute the return on common stockholders' equity. (11) Choose Numerator: Preferred dividends Return on Common Stockholders' Equity 1 Choose Denominator 1 Average common stockholders' equity 1 Return On Common Stockholders' Equity = Return on common stockholders' equity Net income =