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, $52,900; total assets, $249,400; common stock, $85,000; and retained earnings. $23,617.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 12,000 Accounts payable 8,800 Accrued wages payable 31,600 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,900 148,300 Common stock Retained earnings Total assets $ 235,750 Total liabilities and equity CABOT CORPORATION Income Statement $ 15,500 4,400 2,900 71,400 85,000 56,550 $ 235,750 For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 456,600 298,150 158,450 99,300 4,000 55,150 22,217 $ 32,933 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.)