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 $44,111.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 298,450 Gross profit 157.150 Operating expenses 99. Interest expense 4,70 Income before taxes Incos tax expense Net Income CABOT CORPORATION Balance Sheet Assets Cash Short tere Investments Accounts receivable, net Merchandise inventory Liabilities and Equity 22,000 Accounts payable 3.200 Accrued was payable 32,000 Income taxes payable 42,150 Long-term note payable, secured by mortgage on plant assets 2,700 common stock 151.00 Retained earnings $ 258,350 Total liabilities and equity 19,500 4.000 4.600 70,400 Prepaid expenses Plant assets, net Total assets 54,00 75 250, 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, 17 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 Reg 4 Reg 5 Reg 6 Reg7 Reg 8 Reg 9 Reg 10 Req 11 Compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: X Days Choose Numerator: - Days Sales Uncollected Accounts Receivable, net (including current notas receivable from Net sales - Days sales uncollected 15 32,000 $ 455,600 x 365 = 256 days Reqa > Complete this question by entering your answers in the tabs below. Reg 1 and Rega Rea Reg 5 Meqs R eq6 Rea? Req8 Reg 9 Rege Req 10 Req 11 Compute the days' sales in inventory. - - Chooso Numerator Merchandise inventory is Days Sales in Inventory Choose Denominator x Cost of goods sold 2 98.450 x Days 365 365 Dars Sales in Inventory Days' sales in Inventory 515 days 42,1505 = 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 Reg4 Req* Req5 Req6 Req? Reqs Rea R eq10 Reg 11 Compute the debt-to-equity ratio. Choose Numeraton - Dette Equity Ratio Choose Denominator: otal equity 159,850 Current liabetes Debt to Equity Ratio Debt-to-equity ratio 0.13o 1 5 2 0,400 = Regs Req7 > complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req4 Req5 Req 6 Req7 Red Reg 9 Reg 10 Regii Compute the profit margin ratio. Profit Margin Ratio Choose Denominator: - Choose Numerator: Net Income 5 Profit margin ratio Profit margin ratio 70% 31,739 455,600 = & Req7 Req9 > Req 1 and 2 Req3 Reg 4 Regs Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the total asset turnover. Total Asset Turnover Total Asset Turnover Choose Numerator: Choose Denominator: hot sales Average total assets 455,600 15 223 875 Total asset turnover 5 20 times