Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2015, were inventory, $52,900; total assets, $169,400; common stock, $85,000; and retained earnings, $34,000.) CABOT CORPORATION Income Statement For Year Ended December 31, 2016 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income $456, 600 297,050 159,550 98,900 4,300 56,350 22,700 $33,650 CABOT CORPORATION Balance Sheet December 31, 2016 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory Prepaid expenses Plant assets, net Total assets 10,000 Accounts payable 17,500 4,000 3,500 9,400 33,200 7,500 36,150 2,500 Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock 72,400 85,000 67,650 151,300 Retained earnings 250, 050 Total liabilities and equity $250, 050 * These are short-term notes receivable arising from customer (trade) sales 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.) Current Ratio Choose Numerator Choose DenominatorCurrent Ratio Current ratio to 1 2016: Acid-Test Ratio Choose Numerator:Choose Denominator: Acid-Test Ratio Acid-test ratio to 1 2016: Days Sales Uncollected Choose Numerator:Choose Denominator: x DaysDays Sales Uncollected - Days sales uncollected 0 days 2016: Inventory Turnover Choose Numerator:Choose Denominator:Inventory Turnover Cost of goods sold Average inventory Inventory turnover 297,050I 2016:: $ 01 times Days' Sales in Inventory Choose Numerator: Choose Denominator: x DaysDays' Sales in Inventory Days' sales in inventory 2016: 0 days Debt-to-Equity Ratio Choose Numerator:Choose Denominator: Debt-to-Equity Ratio Debt-to-equity ratio 2016 to 1 Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned | Times interest earned 2016: times Profit Margin Ratio Choose Numerator: Choose Denominator:Profit margin ratio Profit margin ratio 2016 Total Asset Turnover Choose Numerator Choose DenominatorTotal Asset Turnover - Total asset turnover 2016: times (10) Return on Total Assets Choose Numerator Choose DenominatorReturn on Total Assets -Return on total assets 2016: Return on Common Stockholders' Equity Choose Numerator: Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity 2016
