Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016, were inventory, $51,900; total assets, $209,400; common stock, $82,000; and retained earnings, $49,216.,) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income 449,600 297,550 152,050 99,300 4,800 47,950 19,316 $ 28,634 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory Liabilities and Equity 15,500 3,200 3,600 $ 14,000 Accounts payable 8,400 Accrued wages payable 32,200 Income taxes payable 5,000 32,150 Long-term note payable, secured by 65,400 mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,500 Common stock 153,300 Retained earnings 82,000 77,850 $ 247,550 S 247,550 Total liabilities and 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.) Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio urrent Ratio Choose Denominator: Choose Numerator:I Current Ratio Current ratio 2017: 0 to 1 Acid-Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 2017: 0 to 1 Compute the days' sales uncollected Days' Sales Uncollected Choose Numerator: Choose Denominator: | x Days | Days Sales Uncollected Days sales uncollected 2017: 0 days Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Re Compute the inventory turnover. Inventory Turnover Choose Numerator:Choose Denominator:Inventory Turnover = | Inventory turnover 0 times 2017; Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req Compute the days' sales in inventory. Days' Sales in Inventory Choose Numerator: Choose Denominator: x DaysDays' Sales in Inventory Days' sales in inventory 2017: 0 days Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Re Compute the debt-to-equity ratio Debt-to-Equity Ratio Choose Numerator: Choose Denominator: Debt-to-Equity Ratio - Debt-to-equity ratio 2017: 0 to 1 3Req 5 Req 1 and 2 Req 3 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. Times Interest Earned Choose Numerator: Choose Denominator:Times Interest Earned Times interest earned 2017 0 times Req 4 Req 5 Req 6 Req 7 Req 8 Req 1 and 2 Req 3 Compute the profit margin ratio Profit Margin Ratio Profit margin ratio - Profit margin ratio Choose Numerator:Choose Denominator: 01% 2017; Req 4 Req 6 Req 7 Req 1 and 2 Req 3 Compute the return on total assets. (10) Req 5 Req 8 Return on Total Assets Choose Numerator: | 1 Choose Denominator: Return on Total Assets Return on total assets 2017; 01% Compute the return on common stockholders' equity. Return on Common Stockholders' Equity Choose Numerator: Choose Denominato Return On Common Stockholders' Equity Return on common stockholders' equity 2017: 01%
