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, $54,900; total assets, $169,400; common stock, $86,000; and retained earnings, $49,298.) Assots Cash Short-term investments Accounts receivable, not Merchandise inventory Prepaid expenses Plant assets, net CABOT CORPORATION Balance Sheet December 31 of current year i Liabilities and Equity $ 22,000 Accounts payable $ 17,500 9,000 Accrued wages payable 4,000 31,600 Income taxes payable 3,300 42,150 2.650 148,300 Long-term note payable, secured by mortgage on plant assets Common stock 64,400 06.000 Retained earnings 90,500 Total assets $ 255,700 Total liabilities and equity $ 255,700 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 451,600 Cost of goods sold 296,850 Gross profit 154,750 Operating expenses 98,500 Intereat expense 4,000 Income before taxes 52,250 21,040 $31,202 Income tax expense Net income 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.)