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 Req 1 and 2 Req 3 Req 4 Req 5 Req6 Reg 7 Req8 Req9 Reg 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Current assets | Choose Denominator: 11 Current liabilities Current Ratio Current ratio 0 to 1 = (2) Acid-Test Ratio | Choose Denominator: cid-Test Ratio Choose Numerator: Quick assets Current liabilities = = Acid-Test Ratio 0 to 1 Req 1 and 2 Req3 Req 3 Req 4 Req 4 Req 5 Req6 Reg Req 8 Req8 Req 9 Req 9 Req 10 Req 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: x Days Choose Numerator: Accounts Receivable, Net sales 365 = Days Sales Uncollected = Days sales uncollected = 0 days 1 x x net Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the inventory turnover. (4) Inventory Turnover I Choose Denominator: 1 Average inventory = Choose Numerator: Cost of goods sold Inventory Turnover Inventory turnover 0 times Req 1 and 2 Req3 Req 4 Rega Req5 Req 6 Rego Req7 Req 8 Req8 Rega Req 10 Req 11 Compute the days' sales in inventory. (5) Choose Numerator: Merchandise inventory Days' Sales in Inventory. I Choose Denominator: x 1 Cost of goods sold x Days 365 = = Days' Sales in Inventory Days' sales in inventory 0 days Req 1 and 2 Reg 2 and 2 Reg 3 Req3 Req 4 Rega Req 5 Reqs Req 6 Reg G Rega Req 7 Reg Req 8 Req 9 Rege Req 10 Reg 10 Req 11 Reg 11 Compute the debt-to-equity ratio. (6) Choose Numerator: Total liabilities Debt-to-Equity Ratio 1 Choose Denominator: Total equity 1 = Debt-to-Equity Ratio Debt-to-equity ratio oto 1 Req 1 and 2 Req3 Reg 3 Req 4 Req 4 Req 5 Req 6 Reg z Req 8 Req8 Req9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Denominator: 1 Interest expense = Choose Numerator: + Interest expense Times Interest Earned Income before tax Times interest earned o times Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. (9) Total Asset Turnover | Choose Denominator: 11 Average total assets Choose Numerator: Net sales Total Asset Turnover Total asset turnover 0 times Req 1 and 2 Req3 Req3 Rega Req5 Req 6 Rego Req 7 Req7 Req8 Req 9 Rega Req 10 Req 10 Req 11 Req 11 Compute the return on total assets. (10) Choose Numerator: Net income Return on Total Assets | Choose Denominator: 1 Average total assets Return on Total Assets Return on total assets 0 % 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) Choose Numerator: Preferred dividends Return on Common Stockholders' Equity Choose Denominator 1 Average common stockholders' equity = Return On Common Stockholders' Equity = Return on common stockholders' equity Net income het income 0 %