Saved 3 & Ch. 12 A 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, $179,400; common stock, $82,000; and retained earnings, $34.772.) Sales CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 454,600 Cost of goods sold 297,050 Gross profit 157,550 Operating expenses 99,200 Interest expense 4,800 Income before taxes 53,550 Income tax expense 21,572 Net income $ 31,978 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 8,400 Accrued wages payable 34,200 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 151,300 Retained earnings $ 245,050 Total liabilities and equity 16,500 4,400 3,000 72,400 Prepaid expenses Plant assets, net Total assets 82,800 66,750 $ 245,050 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.) Saved Ch. 12 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 16,000 Accounts payable 8,400 Accrued wages payable 34,200 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 3,000 Common stock 151,300 Retained earnings $ 245,050 Total liabilities and equity 16,500 4,400 3,000 72,400 Prepaid expenses Plant assets, net Total assets 82,000 66,750 $ 245,050 Required: Compute the following: (1) current ratio. (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in invent (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. Req3 Req 1 and 2 Reg 4 Req 5 Req 6 Req 7 Reg 8 Req 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denominator: Choose Numerator: 1 = Current Ratio - Current ratio to 1 1 Acid-Test. Ratio Complete this question by entering your answers in the tabs below. Reg 8 Reg 9 Reg 10 Reg 7 Reg 5 Reg 6 Req3 Req 4 Req 1 and 2 Compute the current ratio and acid-test ratio. Current Ratio (1) Choose Numerator: Current Ratio 1 Choose Denominator: Current ratio 1 to 1 1 (2) Acid-Test Ratio = Choose Numerator: 1 Choose Denominator: Acid-Test Ratio 1 Acid-Test Ratio 1 to 1 Ree Reg 3 >