Problem 17-4A (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, $47,900; total assets, $169,400; common stock, $84,000; and retained earnings. $38,532) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 16,000 Accounts payable $ 17,500 Short-term investments 8,200 Accrued wagos payable 5,800 Accounts receivable, net 32,200 Income taxes payable 3,700 Merchandise inventory 38,150 Long-term note payable, secured by mortgage on plant asset 68,000 Prepaid expenses 2,850 Common stock 84,000 Plant assets, net 149.300 Retained earnings 68,300 Total assets $ 246.700 Total liabilities and equity 5.246.700 CABOT CORPORATION Income Statement Por Current Year Ended December 31 Sales $ 450, 600 cost of goods sold 297,250 Cross profit 153,350 Operating expenses 99 200 Interest expense 4.300 Income before taxes 49,850 Income tax expense 20,082 Net Income $ 29,768 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, 19) total asset turnover (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) 5 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 tumover, (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) 12 Joints Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Req7 Req8 Rego Re 10 Reg 11 Book Compute the current ratio and acid-test ratio. Pri (1) Numerator Current Ratio Denominator References Current Ratio Current moto 0 to 1 (2) Acid-Test Ratio Denominator: Numerator Acid-Test Ratio Acid Test Ratio tot Req3 > 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. Reg 1 and 2 Req3 Reg 4 Reqs Req 6 Req Reg 8 Reg 9 Req 10 Reg 11 les Compute the days' sales uncollected (3) Numerator Days Sales Uncollected Denominator Days Days Bales Uncollected Diys sales uncollected 0 days Req 1 and 2 Reg 4 > to, 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 Reg 7 Req8 Reg 9 Reg 10 Reg 11 rices Compute the inventory turnover. Inventory Tumover Denominator Numerator: Inventory Turnover Inventory turnover o times Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Days Sales in Inventory Denominator Numerator: Days Days' Sales In Inventory Days' sales in inventory o days 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. Reg 1 and 2 Req3 Reg 4 Req5 Leg 6 Req? Reg 8 Reg 9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Denominator: Numerator: Debt-to-Equity Ratio Debt-to-equity ratio O to 1 1 Complete this question by entering your answers in the tabs below. Reg 1 and 2 Rea 3 Req 4 Req5 Reg 6 Reg 7 Req 8 Reg 9 Req 10 Reg 11 Compute the times interest earned. Times Interest Eamed Denominator: Numerator: Times Interest Earned Times interest eamed times 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, (B) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) return on equity. (Do not round intermediate calculations.) Ek Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Req5 Reg 6 Reg Legs Reg 9 Reg 10 Reg 11 ncos Reg Compute the profit margin ratio. (8) Profit Margin Ratio Denominator: Numerator Profit margin ratio Profit margin ratio % equired: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days! (6) debt-to-equity ratio, 7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total ass on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Req 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover Denominator: Numerator: Total Asset Turnover Total asset turnover o times ( Req8 Req 10 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Rea 10 Reg 11 Compute the return on total assets (10) Return on Total Assets Denominator: Numerator: Return on Total Assets Return on total assets 0 % 1 Complete this question by entering your answers in the tabs below. Print a Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req8 Req9 Reg 10 Reg 11 ferences Compute the return on equity. Retum on Equity Denominator Numerator: Return On Equity Return on equity 0%
