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, $54,900, total assets, $169,400; common stock, $82,000, and retained earnings. $38,527) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 296,950 Gross profit 151,650 Operating expenses 98,700 Interest expense 4,600 Incone before taxes 48, 350 Income tax expense 19,477 Net incon $ 28,873 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 20,00 Accounts payable 8,400 Accrued wages payable 30,400 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 150,280 Retained earnings $ 242,000 Total liabilities and equity 16,500 4,400 3,300 68,400 Prepaid expenses Plant assets, net Total assets 82,000 67.400 $ 242,000 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 Req3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. Choose Numerator: Current Ratio Choose Denominator: Current liabilities Current assets Current Ratio Current ratio 0 to 1 (2) Acid Test Ratio Choose Denominator: Choose Numerator: Accounts receivables, net Acid-Test Ratio Acid-Test Ratio 0 to 1 Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Red 3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Req 9 Req 10 Reg 1 Compute the days' sales uncollected (3) Days! Sales Uncollected Choose Denominator: X Days Choose Numerator: 1 X Days Sales Uncollected Days sales uncollected 0 days X Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Rg 4 Reg 5 Reg 6 Req 7 Req 8 Req9 Req 10 Reg 11 Compute the inventory turnover. (4) Choose Numerator: Inventory Tecnover Choose Denominator: Inventory Turnover Inventory turnover 0 times 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 Req8 Req 9 Req 10 Reg 11 Compute the days' sales in inventory. (5) Days: Sales in Inventory 1 Choose Denominator X Choose Numerator: Days = Days Sales in Inventory Days' sales in inventory 0 days Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Req 5 Real Req 7 Req 8 Req 9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Debt to Equity Ratio Choose Denominator Choose Numerator: Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Req 11 Compute the times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times Interest earned 0 times Homework Saved Help Save 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 Reg 8 Reg 9 Reg 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio 0 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Req 5 Req 6 Req 7 Req 8 Req 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 0 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg4 Reg 5 Reg 6 Reg 7 Req Reg 9 Reg 10 Reg 11 Reg 11 Compute the return on common stockholders' equity. (11) Retum . Common Stockholders' Equity Choose Denominator Choose Numerator: Return On Common Stockholders' Equity = Return on common stockholders' equity 02