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1 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, $53,900; total assets, $189,400; common stock, $87,000; and retained earnings, $31,411.) eBook Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income CABOT CORPORATION Income Statement For Current Year Ended December 31 Req 1 and 2 (1) $ 10,000 8,200 30, 200 Req 3 38,150 2,800 149,300 $ 238,650 Req 4 Numerator $ 453,600 297,250 156,350 98,800 4,400 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. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. 53,150 21,411 $ 31,739 Compute the current ratio and acid-test ratio. CABOT CORPORATION Balance Sheet December 31 of current year Req 5 Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity Req 6 Current Ratio Denominator: Req 7 Req 8 Req 9 Current Ratio Req 10 $ 17,500 5,000 3,600 62,400 87,000 63,150 $ 238,650 Req 11

Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit selected balance sheef amounts at December 31 of the prior year were inventory, $53,900; total assets, $189,400; common stock, $87,000; and retained earnings. Required: Compute the following, (1) current ratio, (2) acid-test ratio, (3) days sales uncollected, (4) inventory turnover, (5) days' sales in invertory. (6) debt-to- quity ratio, (7) times interest eamed, (8) profit margin ratio, (9) total asset tumover, (10) return on total assets, and (i1) return onequity. Note: Do not round intermediate colculations. Complete this question tiy entering your answers in the tabs thelow. Compute the current ratio and acid-test rotio. Selected current year-end firancial staternents of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31 of the prior vear were inventory, $53,900, total assets, $189.400; cammon stock $87000, and retained earninns. \$31,411) Requirad: |uired: mpute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollect debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total as: equity. te: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Compute the current ratio and acid-test ratio

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