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, $189,400; common stock. $87,000; and retained earnings. $31,511.) sk CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 451,600 Cost of goods sold 298,550 Gross profit 153,050 Operating expenses 99,000 Interest expense 4,500 Income before taxes 49,550 Income tax expense 19,961 Net income $ 29,589 nces Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 18,000 Accounts payable B, 200 Accrued wages payable 32,600 Income taxes payable 34,150 Long-tern note payable, secured by mortgage on plant asseto 2,750 Connon stock 147.300 Retained earnings $ 243,000 Total liabilities and equity $ 15,500 3,400 3.600 72,400 Prepaid expenses Plant assets, net Total asset 87,000 61.100 5 243.000 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sale inventory. (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on to 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 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acld-test ratio. (1) Current Ratio ose Denominator: Choose Numerator: 1 Current Ratio Current ratio to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator 1 Acid-Test Ratio Acid-Test Ratio to 1 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 Reg 6 Req 7 Reg 8 Req 9 Reg -5 Compute the days' sales uncollected. (3) Choose Numerator: Days' Sales Uncollected 1 Choose Denominator: Days 1 Days Sales Uncollected = Days sales uncollected days 1 Req 1 and 2 Req3 R$ 4 Reg 5 Req 6 Req 7 Reg 8 Reg 9 Req 10 Compute the inventory turnover. (4) Choose Numerator: Inventory Turnover Choose Denominator: 1 1 Inventory Turnover Inventory turnover times Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req 7 Req8 Reg 9 Reg 10 Req 11 Compute the days' sales in inventory. (5) Choose Numerator: Days Sales In Inventory Choose Denominator: X Days Days' Sales In Inventory Days' sales in inventory days X Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Equity Ratio Choose Denominator: 1 11 Debt-to-Equity Ratio Debt-to-equity ratio to 1 1 11 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req5 Reg 6 Req 7 Req 8 Reg 9 Req 10 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Ea 1 Times interest earn 11 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Req 7 Req Req 9 Re Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio 1 Choose Denominator: Profit margin ratio Profit margin ratio 11 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Req 7 Reg 8 Req9 Re Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover 1 Choose Denominator: = Total Asset Turnover Total asset turnover times Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover inventory. (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (1C assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. CENY Reg 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Reg 7 Req 8 Req 9 Re 10 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets Choose Denominator: 1 Return on Total Assets Return on total assets 1 1 % Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Req 5 Req6 Req Reg 8 Reg 9 Reg 10 Reg 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
