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, $52,900; total assets, $199,400; common stock, $83,000; and retained earnings, $51,005.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 297,550 Gross profit 158,050 Operating expenses 99,400 Interest expense 3,900 Income before taxes 54,750 Income tax expense 22,055 Net income $ 32,695 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 8,600 Accrued wages payable 33,400 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 151,300 Retained earnings $ 252,000 Total liabilities and equity 15,500 2,800 3,600 63,400 Prepaid expenses Plant assets, net Total assets 83,000 83,700 $ 252,000 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.) Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Req 7 Req 8 Reg 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: 1 Choose Denominator: = Current Ratio = = Current ratio 11 0 to 1 (2) Test Ratio Choose Numerator: Choose Denominator: = Acid-Test Ratio = Acid-Test Ratio / 11 0 to 1 Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Reg 9 Req 10 Req 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: Days Choose Numerator: 1 II Days Sales Uncollected 1 = Days sales uncollected = days Req 1 and 2 Req3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory. Choose Denominator: Choose Numerator: 1 Days = 1 = Days' Sales in Inventory Days' sales in inventory days = Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Reg 7 Req 8 Req 9 Reg 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: / Choose Denominator: = Times Interest Earned + = Times interest earned + II times Req 1 and 2 Req3 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: / II Profit margin ratio Profit margin ratio = 1 = % Req 1 and 2 Req 3 Reg 4 Req 5 Reg 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 Denominator Choose Numerator: = Return On Common Stockholders' Equity Return on common stockholders' equity = 1 =