Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $47,900; total assets, $219,400; common stock, $86,000; and retained earnings, $43,361.) CABOT CORPORATION Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 450,600 298,150 152,450 98,500 4,400 49,550 19,961 $ 29,589 CABOT CORPORATION Balance Sheet December 31, 2018 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory $ 16,500 4,800 4,600 $ 22,000 Accounts payable 8,000 Accrued wages payable 32,000 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets Prepaid expenses Plant assets, net Total assets 63,400 86,000 72,950 248,250 2,800 Common stock 149,300 Retained earnings $ 248,250 Total liabilities and equity 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) returrn 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 Req 10 Req 11 Compute the current ratio and acid-test ratio urrent Ratio Choose Numerator: I Choose Denominator:Current Ratio Current ratio 2018 0 to 1 cid-Test Ratio Choose Numerator: / Choose Denominator:Acid-Test Ratio Acid-Test Ratio 2018 Req 1 and 2 Req3> Complete this question by entering your answers in the tabs below. Req 1 and 2Req 3 Req 4 Req 5 Req 6Req 7Req 8 Req 9 Req 10 Req 11 Compute the days' sales uncollected. Days' Sales Uncollected Choose Numerator: Choose Denominator: x DaysDays Sales Uncollected Days sales uncollected 2018: days Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req5Req 6 6Req 7 Req 8 Req 9 Req 10 Req 11 Compute the inventory turnover. Inventory Turnover Choose Numerator: | | Choose Denominator: Inventory Turnover Inventory turnover = 2018: 0 times Req 3 Req5 > 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 10Req 11 Compute the days' sales in inventory. Days' Sales in Inventory Choose Numerator: Choose Denominator: x Days Days' Sales in Invento 1 x Days' sales in inventory ! 2018 0 days KReq 4 Req6 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4Req 5 Req 6 Req 7 Req 8 Req 9 Req 10Req 11 Compute the profit margin ratio. Profit Margin Ratio Choose Numerator:Choose Denominator:Profit margin ratio - Profit margin ratio 2018: 01%) KReq 7 Req 9 >
