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, $48,900, total assets, $239,400: common stock, $81,000; and retained earnings, $34769) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 12,000 Accounts payable B, 880 Accrued wages payable 30,000 Incone taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 150, 300 Retained earnings $ 240,100 Total liabilities and equity $ 16,500 3,800 4,400 70,400 81,000 64,000 $ 240,100 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450, 600 Cost of goods sold 297,450 Gross profit 153,150 Operating expenses 99, 300 Interest expense 4,900 Income before taxes 48,950 Income tax expense 19,719 Net Income $ 29,231 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.) 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. Req 1 and 2 Reg 3 Req 4 Reg 5 Reg 6 Reg 7 Req 8 Reg 9 Reg 10 Req 11 Compute the current ratio and acid-test ratio. (1) Numerator: Current assets Current Ratio Denominator Current liabilities Current Ratio Current ratio olto 1 (2) Numerator: Acid.Tot Ratio Denominator: 1 Acid Test Ratio Acid-Test Ratio Oto 1 Req3 > uired: mpute the following: (1) current ratio. (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventor Hebt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) retum equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. q 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 ompute the days' sales uncollected. 3) Numerator: Days' Sales Uncollected Denominator: Days Days Sales Uncollected Days sales uncollected 0 days Required: Compute the following: (1) current ratio, (2) acid-test ratio. (3) days' sales uncollected, (4) inventory turnover, (5) de (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover (10) return on total 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 Req 5 Reg 6 Req 7 Reg 8 Req 9 Req 10 Reg Compute the inventory turnover. (4) Inventory. Tumover Denominator : Numerator: Inventory Turnover Inventory turnover 0 times "equired: Compute the following: (1) current ratio. (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sal 5) debt-to-equity ratio, (7) times interest earned. (8) profit margin ratio. (9) total asset turnover (10) return on total assets en equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Reg 5 Reg 6 Reqz Reg 8 Req 9 Reg 10 Req 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 Req4 Req6 > Required: Compute the following: (1) current ratio, (2) acid-test ratio. (3) days' sales uncollected, (4) inventory turnover. (5) days' sa (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio (9) total asset turnover (10) return on total asset on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Numerator: Debido-Equity Ratio Denominator Debt-to Equity Ratio Debt-to-equity ratio 0 to 1 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected (4) inventory turnover, (5) days' sales in (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover. (10) return on total assets, and on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Reg 10 Reg 11 Compute the times interest earned. (7) Times Interest Eamed Numerator: Denominator: Times Interest Earned Times Interest earned O times Required: Compute the following: (1) current ratio. (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sale (6) debt-to-equity ratio. (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Reg 7 Req 8 Reg 9 Reg 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Denominator: Numerator: Profit margin ratio Profit margin ratio 0 % Required: Compute the following: (1) current ratio. (2) acid-test ratio. (3) days' sales uncollected. (4) inventory turnover. (5) days' sales (6) debt-to-equity ratio (7) times interest earned (8) profit margin ratio. (9) total asset turnover (10) return on total assets, ar 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 Req Reg 8 Reg 9 Req 10 Reg 11 Compute the total asset turnover. (9) Numerator Total Asset Turnover Denominator Total Asset Turnover Total asset turnover 0 times Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected. (4) inventory turnover. (5) days' sales in invento (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio. (9) total asset turnover (10) return on total assets, and (11) retu on equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Reg 7 Reg 8 Req9 Req 10 Req 11 Compute the return on equity. Retum On Equity Numerator: Denominator Return On Equity Return on equity ol