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 $56,900; total assets. $249,400; common stock, $83,000; and retained earnings, $34 477.) Assets Cash Short-term investments Accounts receivable, het Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 9,000 Accrued wages payable 28,800 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,800 Common stock 153,300 Retained earnings $ 242,050 Total liabilities and equity $ 18,500 3,200 4,600 69,400 Prepaid expenses Plant assets, net Total assets 83,000 63,350 $ 242,050 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales 5 449,600 Cost of goods sold 298,150 Gross profit 151,450 Operating expenses 98,600 Interest expense 4,500 Incone before taxes 48,350 Income tax expense 19.427 Net income $ 28,873 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 assot turnover (10) return on total ossets, ond (11) return on common stockholders equity (Do not round intermediate calculations.) 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 eamed, (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 Reg 3 Reg 4 Req5 Reg 6 Req7 Reg 8 Reg 9 Reg 10 Req 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denominator: Choose Numerator: Current Ratio Current ratio 0 to 1 1 (2) Acid-Test Ratio Choose Denominator Choose Numerator: Acid-Test Ratio Acid-Test Ratio 0 to 1 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 eamed (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. Req8 Reg 9 Reg 10 Reg 11 Reg 1 and 2 Reg 3 Reg 4 Reg 5 Rego Reg 7 Compute the days sales unicollected. (3) Days' Sales Uncollected Choose Numerator Choose Denominator X Days Days Sales Uncollected Days sales uncollected 1 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, (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 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the inventory turnover. Inventory Turnover Choose Denominator: Choose Numerator: 1 Inventory Turnover = Inventory turnover O times 1 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) clays sales uncollected, (4) Inventory turnover. (5) days' soles 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. Req5 Rego Req Reg 8 Reg 9 Reg 10 Reg 11 Reg 1 and 2 Req3 Reg4 Compute the days' sales In Inventory. (5) Choose Numerator Days: Sales In Inventory Choose Denominator Days Days Sales In Inventory Daye sales in inventory 0 days 1 X Reg4 Reg 6 >
