Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $48,900; total assets, $239,400; common stock, $84,000; and retained earnings, $31,101.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales $456,600 296,950 Cost of goods sold 159,650 Gross profit Operating expenses 98,800 Interest expense 4,000 Income before taxes 56,850 Income taxes Net income 22,901 $33,949 CABOT CORPORATION Balance Sheet December 31, 2015 Assets Cash Liabilities and Equity $10,000 Accounts payable $19,500 Short-term investments 9,000 Accrued wages 4,200 payable Accounts receivable, 29,600 Income taxes payable 4,200 net Notes receivable Long-term note (trade) 7,500 payable, secured Merchandise inventory by mortgage on plant 34,150 67,400 assets Prepaid expenses 2,800 Common stock 84,000 151,300 Plant assets, net Retained earnings 65,050 Total assets $244,350 Total liabilities and $244,350 equity * 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 (1) Choose Numerator: Choose Denominator: 2015: = Current Ratio = Current ratio = to 1 (2) 2015: Choose Numerator: (3) Choose Numerator: 2015: 1 1 Acid-Test Ratio Choose = Acid-Test Ratio Denominator: = Acid-test ratio = to 1 Days Sales Uncollected Choose Denominator: x Days = Days Sales Uncollected Days sales uncollected X days (4) Inventory Turnover Choose Choose 1 Numerator: Denominator: Inventory Turnover 2015: 1 = Inventory turnover times (5) Days' Sales in Inventory Choose Numerator: Choose x Days = Denominator: Days' Sales in Inventory Days' sales in X inventory 2015: days (6) 2015: Choose Numerator: Debt-to-Equity Ratio Choose Denominator: Debt-to-Equity Ratio Debt-to-equity ratio to 1 (7) 2015: (8) 2015: Choose Numerator: Times Interest Earned + + 1 Choose Denominator: Times Interest Earned Times interest = earned = times Profit Margin Ratio Choose Numerator: Choose Profit I = Denominator: margin ratio Profit margin 1 = ratio 1 = % (9) Total Asset Turnover Choose Numerator: Choose I Denominator: 2015: (10) 2015: Choose Numerator: 1 Total Asset Turnover Total asset = turnover times Return on Total Assets Choose Denominator: Return on Total Assets = Return on total assets = % (11) Return on Common Stockholders' Equity Choose Numerator: I Choose Denominator 2015: = Return On Common Stockholders' Equity Return on common stockholders' equity = %