Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $55,900; total assets, $209,400; common stock, $89,000; and retained earnings, $30,933.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 452,600 Cost of goods sold 298,150 Gross profit 154,450 Operating expenses 99,500 Interest expense 4,600 Income before taxes 50,350 Income taxes 20, 283 Net income $ 30,067 $ Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) * Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 14,000 Accounts payable 8,800 Accrued wages payable 32,200 Income taxes payable 5,000 36,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 147,300 Retained earnings $ 246, 200 Total liabilities and equity 16,500 4,800 3,500 71,400 Prepaid expenses Plant assets, net Total assets 89,000 61,000 $ 246,200 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 Reg 4 Req 5 Req 6 Req 7 Reg 8 Req 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: 1 Choose Denominator: Current Ratio 1 = Current ratio 2017: / to 1 (2) Acid-Test Ratio I Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 2017: = to 1 Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Reg 9 Req 10 Req 11 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Denominator: Days Choose Numerator: 1 Days Sales Uncollected Days sales uncollected 2017: days Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: 1 Choose Denominator: = Inventory Turnover Inventory turnover / 2017: / times Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Reg 7 Reg 8 Req 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory Choose Denominator: Days Choose Numerator: 1 = / X = Days' Sales in Inventory Days' sales in inventory days 2017: X Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: 1 Debt-to-Equity Ratio Debt-to-equity ratio 1 2017: to 1 Req 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: = Times Interest Earned + / = Times interest earned 2017: + / times Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Req 7 Req 8 Req9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: 1 Profit margin ratio Profit margin ratio 1 = 2017: % Req 1 and 2 Req 3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. (9) Total Asset Turnover Choose Numerator: 1 Choose Denominator: Total Asset Turnover / Total asset turnover 2017: 1 = times Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Req 9 Req 10 Req 11 Compute the return on total assets. (10) Return on Total Assets Choose Denominator: Choose Numerator: / Return on Total Assets / - Return on total assets 2017: 1 % Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Req 7 Reg 8 Req 9 Reg 10 Req 11 Compute the return on common stockholders' equity. (11) Choose Numerator: / Return on Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity / = 2017: / = %