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, $88,000; and retained earnings, $31,414.) 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 98,600 Interest expense 4,300 Income before taxes 54,150 Income tax expense 21,814 Net income $ 32,336 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 8,200 Accrued wages payable 31,400 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,800 Common stock 153,300 Retained earnings $ 245,850 Total liabilities and equity 15,500 4,000 3,200 71,400 Prepaid expenses Plant assets, net Total assets 88,000 63,750 $ 245,850 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 Req3 | Rega Req 4 Req 5 Rea 5 Req 6 Rego Req7 Req 8 Req8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current assets I 1 Current Ratio Choose Denominator: Current liabilities = = | = Current Ratio Current ratio 0 to 1 Acid-Test Ratio Choose Numerator: Quick assets pose Denominator: Current liabilities = = Acid-Test Ratio Acid-Test Ratio 0 to 1 ( Req 1 and 2 Req3 > Req 1 and 2 Reg 3 Req 4 Req5 Req 5 Req 6 Rego Req 7 Req> Rego Req 8 Req 9 Rege Req 10 Req 10 Req 11 Reg 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: x Days I = Days Sales Uncollected Choose Numerator: Accounts Receivable, net Net sales 365 = Days sales uncollected 0 days Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Rea> Req 8 Rego Req 9 Rego Req 10 Req 10 Req 11 Req 11 | Compute the inventory turnover. (4) Choose Numerator: Cost of goods sold Inventory Turnover I Choose Denominator: 1 Average inventory Inventory Turnover Inventory turnover 0 times Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory = Choose Numerator: Merchandise inventory Choose Denominator: Cost of goods sold x x x Days 365 Days' Sales in Inventory Days' sales in inventory 0 days = Req 1 and 2 Req 3 Req 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Choose Numerator: Total liabilities Debt-to-Equity Ratio | Choose Denominator: Total equity Debt-to-Equity Ratio Debt-to-equity ratio = oto 1 Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Reg 11 Compute the times interest earned. Times Interest Earned Choose Denominator: Cho Times Interest Earned Choose Numerator: Interest expense + Income before tax | Interest expense Times interest earned + 0 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 profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: = Profit margin ratio Net income I Net sales = Profit margin ratio 0 % Req 1 and 2 Req 3 Rega Req 5 Rego Rego Req 8 Req8 Reg 8 Req 9 Reg 9 Req 10 Reg 10 Req 11 Reg 11 Compute the total asset turnover. Total Asset Turnover I Choose Denominator 1 Average total assets Choose Numerator: Net sales = Total Asset Turnover Total asset turnover 0 times Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req? Rego Req 8 Req 9 Rego Req 10 Req 10 Req 11 Req11 Compute the return on total assets. (10) Choose Numerator: Net income Return on Total Assets | Choose Denominator: | Average total assets Return on Total Assets Return on total assets 01% Req 1 and 2 Req 3 Req 4 Reg 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 Choose Numerator: Preferred dividends Choose Denominator 1 Average common stockholders' equity Return On Common Stockholders' Equity Return on common stockholders' equity Net income 0 %