Problem 13-4A Calculation of financial statement ratios LO P3 Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $47,900; total assets, $209,400, common stock, $90,000; and retained earnings, $37,678.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 453,600 Cost of goods sold 298,450 Gross profit 155, 150 Operating expenses 99,200 Interest expense 4,000 Incone before taxes 51,950 Income taxes 20,928 Net Income $ 31,022 Assets Cash Short-term Investments Accounts receivable, net Notes receivable (trade) Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 20,000 Accounts payable 8,800 Accrued wages payable 31.200 Income taxes payable 7.500 34,150 Long-term note payable secured by mortgage on plant assets 2,450 Comon stock 148300 Retained earnings $ 252,400 Total liabilities and equity 19,500 4,200 4,600 65,469 Prepaid expenses Plant assets, net Total assets 90,000 68700 $ 252,400 These are short term notes receivable arising from customer (trade) sales. Required: Compute the following current ratio. (2acid.test ratio. (3) days sales uncollected. (4) Inventory turnover. (5) days' sales in inventory Oldebro equitration times interest earned. (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (m) return on common stockholders' equity. (Do not found intermediate calculations.) Answer is complete but not entirely correct. Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)" Merchandise inventory CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity 20,eee Accounts payable 8,880 Accrued wages payable 31,28e Income taxes payable 7,500 34,150 Long-term note payable, secured by mortgage on plant assets 2,450 Common stock 148,389 Retained earnings $ 252,480 Total liabilities and equity 19, see 4,200 4,600 65,480 Prepaid expenses Plant assets, net Total assets 90,000 68.700 $ 252,480 * 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 invento (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (11) retu on common stockholders' equity. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Rega Rega Reas Rego Reg? Rego Rege Reg 10 Reg 11 Compute the debt-to-equity ratio. Choose Numerator Total liabilities S 20.300 Debt. to Equity Ratio Choose Denominator Total equity 224 100 Debt-to-Equity Ratio Debt-to-equity ratio 10.13 101 2017 I S - - Reqs > 232,4 Total liabilities and equity $ 252,400 "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 inve (6) debt-to-equity ratio ) times interest earned. (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (11) on common stockholders' equity. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 5 7 Req8 Reg9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. Current Ratie (1) Current Ratio Choose Denominator: Current liabilities 28,300 Choose Numerator: Current assets $ 28,8001 Current Current Ratio Current ratio 110 2017: - Acid.Test Ratio Choose Numerator: Quick assets $ 20,000 Acid Test Ratio Choose Denominator: Current liabilities $ 28,300 Acid-Test Ratio Acid-Test Ratio 0.7 to 1 2017: Reg 3 > Prepaid expenses Plant assets, net Total assets mortgage on plant assets 2,458 Common stock 148,380 Retained earnings $ 252,400 Total liabilities and equity 90,689 68,700 252.489 $ *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 inver (6) debt-to-equity ratio. (7) times interest eamed (8) profit margin ratio. (9) total asset turnover (10) return on total assets, and (11) re on common stockholders' equity. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Reg 7 Req 8 Reg 9 Req 10 Reg 11 Days Sales Uncollected Compute the days' sales uncollected. cted. (3) Days' Sales Uncollected Choose Choose Numerator Denominator: Accounts Receivable, net Net sales * 3650 notes receivable from customers) 2017: $ 38.700 $ 155.150 X 365 Days sales uncollected 91.0 days