Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.) 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.) 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.)
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 448,600 Cost of goods sold 297,250 Gross profit 151,350 Operating expenses 98,600 Interest expense 4,100 Income before taxes 48,650 Income taxes 19,598 Net income $ 29,052 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 10,000 Accounts payable 8,400 Accrued wages payable 29,200 Income taxes payable 4,500 32,150 Long-term note payable, secured by mortgage on plant assets 2,650 Common stock 153,300 Retained earnings $ 240,200 Total liabilities and equity 17,500 3,200 3,300 63,400 Prepaid expenses Plant assets, net 90,000 62,800 $ 240,200 Total assets * 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.) Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: Days Choose Numerator: / Days Sales Uncollected - Accounts Receivable, net (including current notes receivable from customers) Net sales 365 Days Sales Uncollected 2017: 1 0 days Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: Choose Denominator: II / / Inventory Turnover Inventory Turnover II 2017: 0 times Compute the days' sales in inventory. (5) Days' Sales in Inventory. Choose Denominator: Days Choose Numerator: = Days' Sales in Inventory Days' Sales in Inventory 0 days 2017: = Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Numerator: Choose Denominator: Debt-to-Equity Ratio Debt-to-Equity Ratio = 2017: = oto 1 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: / Choose Denominator: Times Interest Earned + / II Times interest earned 2017: + = 0 times Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio - = 2017: = 0 % Compute the total asset turnover. (9) Total Asset Turnover Choose Numerator: Choose Denominator: Total Asset Turnover Total Asset Turnover 1 1 2017: = 0 times Compute the return on total assets. (10) Return on Total Assets Choose Numerator: Choose Denominator: Return on Total Assets 1 / / = Return on Total Assets 2017: 0 Compute the return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity. Choose Denominator Return On Common Stockholders' Equ Return On Common Stockholders' Equity = 2017: / =
