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, $51,900; total assets, $189,400, common stock, $84,000; and retained earnings, $44,11) CABOT CORPORATION Income Statement For Current Year Ended Decenber 31 Book $ 455,600 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense 298,450 157,15e 99,300 rint 4,700 53,150 21,411 rences Net Income 31,739 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Assets 22,000 Accounts payable 8,200 Accrued wages payable 32,000 Incone taxes payable 42,150 Long-tern note payable, secured by Cash 19,500 4,000 4,600 70,400 Short-term investmentS Accounts recelvable, net Herchandise 1nventory nortgage on plant assets Prepaid expenses Plant assets, net 2,700 Common stock 151, 300 Retained earnings $ 258,350 Total liabilities and equity 84,000 75,850 Total assets $ 258,350 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 eamed. (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity (Do not round intermediete calculations.) Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 4 Reg 6 Reg 3 Reg 5 Reg 8 Reg 7 Reg 9 Reg 10 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Choose Denominator: Current Ratio Current assets Current liabilities Current ratio 107,050 28,100 3.8 %3D to 1 (2) Acid-Test Ratio Choose Numerator: Choose Denominator: Acid-Test Ratio Quick assets Current liabilities Acid-Test Ratio 62.200 28,100 to 1 Rea Land 2 Rea 3> Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (! (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on t on common stockholders' equity. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 3 Req 1 and 2 Req 4 Reg 5 Reg 6 Reg 8 Reg 7 Req 9 Req 10 Compute the days' sales uncollected. Days' Sales Uncollected (3) Choose Numerator: Choose Denominator: Days Sales Uncollected Days Accounts Receivable, net (including current notes receivable from customers) Net sales 365 Days sales uncollected IS 31,739 455,600 365 25.4 days