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, $52,900; total assets, $239,400; common stock, $86,000; and retained earnings, $31,490.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 453,600 Coat of goods sold 296,950 Gross profit 156,650 Operating expenses 99,400 Interest expense 4,400 Incone before taxea 52,950 Income tax expense 21,290 Net income $ 31,560 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Dalance sheet December 31 Liabilities and Equity $ 18,000 Accounts payable 8,200 Recrued wagon payable 29,000 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 153,300 Retained earnings $ 245,550 Total liabilities and equity $ 18,500 2,000 3,800 71,400 86,000 63,050 $ 245,550 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) entory 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.) Total assets $ 245,550 Total liabilities and equity $ 245,550 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inver (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) re 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 Reg 4 Reqs Reg 6 Reg 7 Req 8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio, Choose Numerator: Current Ratio Choose Denominator: Current Ratio Current ratio 1 to 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 1 to 1 Req3 > Req 1 and 2 Req 3 Req 4 Reqs Req 6 Req 7 Req8 Reg 9 Req 10 Req 11 Compute the days' sales uncollected. (3) DaysSales Uncollected Choose Denominator: Days Choose Numerator: = Days Sales Uncollected - Days sales uncollected days Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Req 5 Req 6 Req 7 Req8 Req 9 Reg 10 Req 11 Compute the inventory turnover. Choose Numerator: Inventory Turnover Choose Denominator: Inventory Turnover Inventory turnover times Reg 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Rea 7 Req8 Reg 9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Days' Sales in Inventory Choose Denominator: Choose Numerator: X Days x Days' Sales in Inventory Days' sales in inventory days 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 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 Reg 5 Reg 6 Req7 Req8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: Debt-to-Equity Ratio Debt-to-equity ratio to 1 Req 1 and 2 Reg 3 Reg 4 Req5 Reg 6 Reg 7 Reg 8 Reg 9 Req 10 Reg 11 Compute the times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned times 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 Req8 Req 9 Reg 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio % C Reg 7 Req> Req 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Req 7 Req 8 Req 9 Req 10 Reg 11 Compute the total asset turnover. (9) Total Asset Turnover Choose Denominator Choose Numerator: Total Asset Turnover Total asset turnover times 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 common stockholders' 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 Req5 Reg 6 Reg 7 Req8 Reg 9 Req 10 Reg 11 Compute the return on total assets. (10) Return on Total Assets Choose Denominator: Choose Numerator: Return on Total Assets Return on total assets Complete this question by entering your answers in the tabs below. Red 1 and 2 Req3 Reg 4 Regs Req6 Req7 Req Reg9 Req 10 Reg 11 Compute the return on common stockholders' equity (11) Return on Common Stockholders' Equity Choose Denominator Choose Numerator - Return On Common Stockholders' Equity - Return on common stockholders' equity