Problem 13-4A (Algo) Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31 of the prior year were inventory, $53,900, total assets, $199,400, common stock. $85,000, and retained earrings, $33,744) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 17,500 Short-term investments 8,400 Accrued wages payable 3,480 Accounts receivable, net 32,680 Income taxes payable 3,000 Merchandise inventory 34,150 Long-term note payable, secured by mortgage on plant assets 65,400 Prepaid expenses 2,750 Common stock 85, cee Plant assets, net 148,309 Retained earnings 61,999 Total assets 5 236,200 Total liabilities and equity $ 236,200 CABOT CORPORATION Incoee Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 298 350 Gross profit 150,250 Operating expenses 96,700 Interest expense 4.400 Income before taxes 47,150 Income tax expense 18,294 Net Income $ 28,156 Renud 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 equity. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reqs Reg 6 Req 7 Req8 Reg 9 Reg 10 Req11 Compute the current ratio and acid-test ratio. (1) Numerator: Current assets Current Ratio Denominator: 1 Current liabilities Current Ratio Current ratio 3.7 to 1 87.900 23,900 = (2) Numerator: Quick assets $ Acid Test Ratio Denominator: Current liabilities $ / 51,000 1 Acid Test Ratio Acid-Test Ratio 21 to 1 23,900 Req3 > 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 equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales uncollected. (3) Days Sales Uncollected Denominator: Numerator: Days Days Sales Uncollected Accounts Receivable, net (including current notes receivable from customers) 2 Net sales 365 Days sales uncollected o days red Hels 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, () times interest earned. (8) profit margin ratio (9) total asset turnover, (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Red 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req2 Req8 Req 9 Reg 10 Reg 11 Compute the inventory turnover. 141 1 Numerator: Cost of goods sold $ Inventory Tumover Denominator: Average inventory $ 88,050 . Inventory Turnover Inventory turnover 3.4 times 299, 350 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 equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Red 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. 15 Nurnerator: Ending merchandise inventory 5 34,150 / Days' Sales in Inventory Denominator: Cost of goods sold $ 298,350 Days 365 365 Days' Sales in Inventory Days' sales in inventory 41.8 days 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) retum on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (0) Numerator: Debt-to-Equity Ratio Denominator: Total equity 1 / Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 $ 98,700 BU 6) debt to equity ratio) times interest eamed. (8) profit margin ratio. 19) total asset turnover (10) renim on total, en equly (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Req 7 Req 8 Req 9 Reg 10 Reg 11 Compute the profit margin ratio. (8) Prolit Margin Ratio Denominator Nurnerator: / Profit margin ratio Profit margin ratio 01% Required: Compute the following: (1) current ratio, (2) acid rent ratio, (3) days' sales uncollected, inventory turnover by day, 6) debt-toequity ratio, 2 timer interest eamed. (B) profit margin ratio (9) total ansetturnover (10) retum on totale and nequity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reqs Reg 6 Reg Req 8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover. (0) Total Asset Turnover Denominator: Numerator: Total Asset Turnover Total asset turnover O times Required: Compose the following: current ratio (2) acid-test ratio(B) days sales uncollected, inventory tumoveisyy samo 16) debt to equity ratio, times interest earned, (8) profit margin ratio, 19) total asset turnover (10) retum on total asset and one only (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 3 Reg 1 and 2 Req 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Req 11 Reg 10 Compute the return on total assets. (10) Return on Total Assets Denominator Numerator: Return on Total Assets Return on total assets 0 % 1 Reg 9 Req 11 > Required: Compute the following (1) current ratio, (2) acid-test ratio. (3) days'sales uncollected ) inventory tomover, 15) days Balearen 16) detto-equity ratio (7) times interest earned, 18) profit margin ratio, (9) tatal asset turnover (10) return on total assem ondan rotan bi quly (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Req 8 Req 9 Reg 10 Reg 11 Compute the return on equity. (111 Return on Equity Denominator Numerator: Return On Equity Return on equity 1