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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

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, $49,900; total assets, $189,400; common stock, $87,000; and retained earnings, $31,139.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales $ 456,600
Cost of goods sold 297,350
Gross profit 159,250
Operating expenses 99,200
Interest expense 4,100
Income before taxes 55,950
Income tax expense 22,539
Net income $ 33,411
CABOT CORPORATION Balance Sheet December 31
Assets Liabilities and Equity
Cash $ 14,000 Accounts payable $ 15,500
Short-term investments 9,400 Accrued wages payable 3,000
Accounts receivable, net 31,400 Income taxes payable 3,800
Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 69,400
Prepaid expenses 3,000 Common stock 87,000
Plant assets, net 149,300 Retained earnings 64,550
Total assets $ 243,250 Total liabilities and equity $ 243,250

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.

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Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: / Choose Denominator: Current Ratio / Current ratio / to 1 (2) Acid-Test Ratio Choose Numerator: 1 Choose Denominator: Acid-Test Ratio / Acid-Test Ratio 1 to 1 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Numerator: 1 Choose Denominator: Days = Days Sales Uncollected / Days sales uncollected / X days 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 Req 8 Req 9 Req 10 Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: / Choose Denominator: Inventory Turnover Inventory turnover 1 / times 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 Req 8 Req 9 Req 10 Compute the days' sales in inventory. (5) Days' Sales in Inventory. Choose Denominator: Choose Numerator: 1 Days Days' Sales in Inventor Days' sales in inventory / 1 days Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: 1 Debt-to-Equity Ratio Debt-to-equity ratio / to 1 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: Il Times Interest Earned Times interest earned II + times Compute the profit margin ratio. (8) Profit Margin Ratio Choose Numerator: / Choose Denominator: Profit margin ratio Profit margin ratio 1 = / 0 % Compute the total asset turnover. (9) Total Asset Turnover Choose Denominator: Choose Numerator: Total Asset Turnover 1 Total asset turnover / o times Compute the return on total assets. (10) Return on Total Assets Choose Numerator: 1 Choose Denominator: Return on Total Assets 1 Return on total assets / 0 % Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Numerator: Choose Denominator = Return On Common Stockholders' Equity = Return on common stockholders' equity 1 0 %

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