Problem 17-4A (Algo) 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, $47,900; total assets, $169,400; common stock, $84,000; and retained earnings, $38,532.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net ces Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 16,000 Accounts payable $ 17,500 8,200 Accrued wages payable 4,800 32,200 Income taxes payable 3,700 38,150 Long-term note payable, secured by mortgage on plant assets 68,400 2,850 149,300 Common stock 84,000 Retained earnings 68,300 $ 246,700 Total liabilities and equity $246,700 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $450,600 Cost of goods sold: 297,250 Gross profit 153,350 Operating expenses 99,200 Interest expense 4,300 Income before taxes 49,850 Income tax expense 20,082 $29,768 Net income 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 equity. (Do not round intermediate calculations.)