Selected year-end financlal 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 Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income $448,600 297,250 151,350 98,600 ,100 48,650 19,59B 29, 052 CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory 10,000 Accounts payable 8,400 Accrued wages payable 29,200 Incoe taxes payable $ 17,500 3, 200 3,300 ,500 32,150 Long-term note payable, secured 63,400 by mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,650 Comon stock 153, 300 Retained earnings 90,000 62,800 $ 240,200 Total liabilities and equity 240,200 These are short-term notes recelvable arising from customer (trade) sales. Requirec Compute the following: (1) current ratio, (2) acld-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 ratlo, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermedlate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. Current Ratio Choose Numerator: Choose Denominator:Current Ratio Current Rati 2017: to 1 t Ra Choose Numerator: / Choose Denominator: Acid-Test Ratio Acid-Test Ratio 2017 to 1 Req 1 and 2 Req 3 > Complete this question by entering your answers in the tabs below. Req 1 and 2Req3 Req 4 Req 5 Req 6Rq 7Req 8Req 9 9Req 10 Req 11 Compute the days' sales uncollected. Choose Numerator: | I Choose Denominator: | x | Days | | Days Sales Uncollected Days Sales Uncollected 2017 days Req 1 and 2 Req 4 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req Compute the inventory turnover. Inventory Turnover Choose Numerator: Choose Denominator: -Inventory Turnover Inventory Turnover times 2017 Req 3 Req 5 > Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9Req 10 Compute the days' sales in inventory. Choose Numerator: Choose Denominator:xDaysDays' Sales in Inventory Days' Sales in Inventory 2017: days K Req 4 Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Compute the debt-to-equity ratio. Choose Numerator: | 1 Choose Denominator: Debt-to-Equity Ratio Debt-to-Equity Ratio 2017 to 1 Req 5 Req Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10Req 11 Compute the times interest earned. Times Interest Earned Choose Numerator: Choose Denominator:Times Interest Earned Times interest earned = 2017 times Req 6 Req 4 Req 5 Req 6 Req 7 Req 8 Req 1 and 2 Req 3 Compute the profit margin ratio. Choose Denominator:Profit margin ratio - Profit margin ratio Choose Numerator: 2017: Req 7 Compute the total asset turnover. Total Asset Turnover Choose Numerator: Choose Denominator: Total Asset Turnover Total Asset Turnover 2017 times Req 8 Req 10> Compute the return on total assets. (10) Return on Total Assets Choose Numerator: Choose Denominator: Return on Total Assets Return on Total Assets - 2017
