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, $51,900; total assets, $179,400; common stock, $85,000, and retained earnings, $22,976.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 448,608 297,959 150, 650 98,809 4,000 Gross profit Operating expenses Interest expense Income before taxes 47,850 Income tax expense 19,276 Net income $ 28,574 Assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Accounts payable Cash $ 10,000 $ 16,500 Short-term investments 8,200 Accounts receivable, net 30,200 Accrued wages payable Income taxes payable 3,000 3,300 Merchandise inventory 30,150 Prepaid expenses Plant assets, net 2,900 148,300 Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings 70,400 85,000 51,550 Total assets $ 229,750 Total liabilities and equity $ 229,750 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 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Compute the current ratio and acid-test ratio. The formula for the current ratio is: Current Assets + Curent Liabilities The formula for the acid-test ratio is: (Cash + Short-Term Investments + Current Receivables) + Current Liabilities (1) or: Quick Assets Current Liabiities Current Ratio Show less A < Prex 6 of 21