Problem 13-4A 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, $56,900; total assets, $229,400; common stock, $81,000; and retained earnings, $48,176.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,350 Gross profit 155, 250 Operating expenses 98,900 Interest expense 4,900 Income before taxes 51,450 Income tax expense 20,726 Net income $ 30,724 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 20,000 Accounts payable 9,600 Accrued wages payable 30,800 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 2,850 Common stock 149,300 Retained earnings $ 248,700 Total liabilities and equity 15,500 3,800 3,100 66,400 Prepaid expenses Plant assets, net Total assets 81,000 78,900 $ 248,700 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 Req 4 Req 5 Req 6 Req 7 Reg 8 Req 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: 1 Choose Denominator: Current Ratio 1 Current ratio / to 1 (2) Acid-Test Ratio Choose Numerator: / Choose Denominator: Acid-Test Ratio 1 Acid-Test Ratio