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, $249,400; common stock, $83,000; and retained earnings, $43,040.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 298, 250 Gross profit 156, 350 Operating expenses 99,200 Interest expense 4,300 Income before taxes 52,850 Income tax expense 21,290 Net income $ 31,560 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 22,000 Accounts payable 8,600 Accrued wages payable 31,800 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,650 Common stock 149, 300 Retained earnings $ 246,500 Total liabilities and equity 17,500 4,600 4,400 62,400 Prepaid expenses Plant assets, net Total assets 83,000 74,600 $ 246,500 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 Req 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current assets Current Ratio 1 Choose Denominator: 1 Current liabilities S = = = Current Ratio Current ratio to 1 I 26,500 (2) Choose Numerator: Quick assets Acid-Test Ratio 1 Choose Denominator: 1 Current liabilities IS 2 = = Acid-Test Ratio Acid-Test Ratio | to 1 6.500 Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: Days Choose Numerator: I = Days Sales Uncollected Days sales uncollected 0 days Req 1 and 2 Req3 Req 4 Reg 5 Req 6 Req 7 Req 8 Req9 Req Compute the inventory turnover. (4) Inventory Turnover 1 Choose Denominator: Choose Numerator: = Inventory Turnover Inventory turnover 0 times Req 1 and 2 Req3 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 Denominator: X Choose Numerator: I Days = = Days' Sales in Inventory Days' sales in inventory 0 days Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 1 Rego R Req 6 Req 7 Req 8 Req9 Req 10 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: = = - Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Denominator: Choose Numerator: = Times Interest Earned Times interest earned 0 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 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio 1 Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio = 0 % Req 1 and 2 Req 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Compute the total asset turnover. (9) Total Asset Turnover 1 Choose Denominator: Choose Numerator: = = Total Asset Turnover Total asset turnover 0 times Req 1 and 2 Req 3 Req 4 Req 5 Reg 6 Req 7 Red ? Req 8 Rega Req 9 Rea O Reg 10 Reg 10 - Compute the return on total assets. (10) Return on Total Assets 1 Choose Denominator: Choose Numerator: Return on Total Assets Return on total assets 0 % Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req8 Req9 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 0 % Reg 10 Reg 11 )