Problem $17-4$A $($Algo$)$ Calculating financial statement ratios LO P$3$

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, $$46,900$; total assets, $$249,400$; common stock, $$85,000$; and retained earnings,

$$40,194.$

CABOT CORPORATION

Balance Sheet

December $31$ of current year

Assets

Liabilities and Equity

Cash

Short$-$term investments

Accounts receivable, net

Merchandise inventory

Prepaid expenses

Plant assets, net

Total assets

$$12,000$ Accounts payable

$9,200$ Accrued wages payable

$$18,500$

$3,200$

$28,600$ Income taxes payable $4,300$

$42,150$ Long$-$term note payable, secured by mortgage on plant assets $65,400$

$2,500$ Common stock $85,000$

$150,300$ Retained earnings

$$244,750$ Total liabilities and equity

$68,350$

$$244,750$

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.

Note: Do not round intermediate calculations.

Complete this question by entering your answers in the tabs below.

Compute the current ratio and acid$-$test ratio.