Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts December 31, 2016, were inventory. $56,900; total assets, $169,400, common stock, $85,000; and retained earnings. $31,198.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 449,600 Cost of goods sold 298,050 Gross profit 151,550 Operating expenses 98,500 Interest expense 4,400 Income before taxes 48,650 Income taxes 19,598 Net income $ 29,052 CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity 8,000 Accounts payable 9,400 Accrued wages payable 31,200 Income taxes payable s 18,500 3,400 4,100 Assets Cash $ Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise Inventory Prepaid expenses Plant assets, net Total assets 68,400 5,000 34,150 Long-term note payable, secured by mortgage on plant assets 2,600 Common stock 149,300 Retained earnings 239,650 Total liabilities and equity 85,000 60.250 $ 239,650 * 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 inventor (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 current ratio and acid-test ratio. (1) Choose Numerator: Current assets 2017: Current Ratio Choose Denominator: Current liabilities 11 Current Ratio Current ratio 0 to 1 11 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 0 to 1 2017: RO 2 Req3 > Compute the days' sales uncollected. (3) Days' Sales Uncollected 1 Choose Denominator: *+ Days Choose Numerator: Days Sales Uncollected Days sales uncollected 2017: 0 days Compute the inventory turnover. Inventory Turnover 1 Choose Denominator: Choose Numerator: = Inventory Turnover = Inventory turnover O times 2017: 1 = Compute the days' sales in inventory. (5) Days' Sales In Inventory Choose Denominator: Days Choose Numerator: X Days' Sales in Inventory Days' sales in inventory o days 2017: Compute the debt-to-equity ratio. Choose Numerator: Debt-to-Equity Ratio 1 Choose Denominator: Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 2017: Compute the times interest earned. 7) Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned Times interest eamed 2017: / O times Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio 1 Choose Denominator: 1 1 Profit margin ratio Profit margin ratio 0 % 2017: Compute the total asset turnover. (9) Total Asset Turnover Choose Denominator: Choose Numerator: Total Asset Turnover Total asset turnover 11 2017: 11 0 times Compute the return on total assets. (10) Return on Total Assets 1 Choose Denominator: Choose Numerator: Return on Total Assets Return on total assets 0 % 2017: 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 0 % 2017:
