Problem 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, $189,400, common stock, $82,000; and retained earnings, $40.979.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Liabilities and Equity $ 12,000 Accounts payable $ 15,500 9,200 Accrued wages payable. 3,600 33,600 Income taxes payable 4,400 34, 150 Long-term note payable, secured by mortgage on plant assets 71,400 2,650 153, 300 Common stock 82,000 Retained earnings 68,000 Total assets $ 244,900 Total liabilities and equity $244,900 CABOT CORPORATION Incone Statement For Current Year Ended December 31 Sales Cost of goods sold $447,600 298,250 Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: 149,350 99,400 4,700 45,250 18,229 $ 27,021 Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory.