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, $48,900; total assets, $169,400; common stock, $90,000; and retained earnings, $40,989.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 20,000 Accounts payable 8,200 Accrued wages payable 32,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 153,300 Retained earnings $ 249,150 Total liabilities and equity For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 453,600 297,250 156,350 99,100 4,900 52,350 21,089 $ 31,261 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 $ 16,500 4,200 2,800 63,400 90,000 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. 72,250 (1) $ 249,150 Numerator: 1 Current Ratio Denominator: = Current Ratio Current ratio to 1 (2) Numerator: 1 1 Acid-Test Ratio Denominator. Acid-Test Ratio = Acid-Test Ratio = to 1 Req 1 and 2 Req 3 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in invent Compute the days' sales uncollected. (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) ret on equity. Note: Do not round intermediate calculations. Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 (3) Days' Sales Uncollected Numerator: Denominator: Complete this question by entering your answers in the tabs below. 1 x Days = Days Sales Uncollected = Days sales uncollected days Req 1 and 2 Req 1 and 2 Req 3 Req 3 Req 4 Req 5 Req 4 Req 5 Req 6 Req 6 Req 7 Req 8 Req 7 Req 8 Req 9 Req 10 Req 9 Req 11 Req 10 Req 11 Compute the inventory turnover. Compute the debt-to-equity ratio. (4) (6) Numerator: 1 Inventory Turnover Denominator: = Inventory Turnover = Inventory turnover = times Numerator: 1 1 Debt-to-Equity Ratio Denominator: = = Debt-to-Equity Ratio Debt-to-equity ratio = to 1 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 1 and 2 Req 8 Req 9 Req 3 Req 10 Req 4 Req 5 Req 11 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. Compute the days' sales in inventory. (7) (5) Numerator: Days' Sales in Inventory Denominator: Days x Days' Sales in Inventory Days' sales in inventory days Times Interest Earned Numerator: Denominator: 1 1 Times Interest Earned = Times interest earned = times Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Compute the profit margin ratio. Req 7 Req 8 Req 9 Req 10 Req 11 (6) Profit Margin Ratio Numerator: 1 Denominator: E Profit margin ratio 1 = Profit margin ratio = % Compute the total asset turnover. (9) Numerator: 1 Total Asset Turnover Denominator: Total Asset Turnover = Total asset turnover times Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Req 1 and 2 Req 3 Compute the return on total assets. Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 (10) Numerator: 1 Return on Total Assets Denominator: Return on Total Assets = Return on total assets = % Compute the return on equity. (11) Return on Equity Numerator: Denominator 1 I Return On Equity = Return on equity = %