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Che 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, $229,400: common stock. $83,000; and retained earnings. $24,609) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 297,950 Gross profit 152,650 Operating expenses 98,800 Interest expense 4,800 Income before taxes 49,050 Income tax expense 19,759 Net income $ 29,291 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 9,600 Accrued wages payable 29,200 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 148,300 Retained earnings $ 231,700 Total Liabilities and equity $ 19,500 4,000 3,900 67,400 83,000 53,900 $ 231,700 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Req 5 Req6 Req 7 Req 8 Req 9 Re Compute the inventory turnover. (4) Choose Numerator: Inventory Turnover 1 Choose Denominator: 1 11 = Inventory Turnover Inventory turnover o times / 11 Req 1 and 2 Req 3 Reg 4 Reg 5 Reg 6 Req 7 Req 8 Req9 RE Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Equity Ratio 1 Choose Denominator: 1 1 Debt-to-Equity Ratio Debt-to-equity ratio 0 to 1 Reg 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Req 7 Req 8 Reg 9 Req 10 Req 11 Compute the times interest earned. (7) Choose Numerator: Times Interest Earned Choose Denominator: Times Interest Earned Times interest earned o times 1 ( Req6 Req8 > Req 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Reg 7 Req 8 Reg 9 Reg 10 Reg 11 Compute the profit margin ratio. (8) Choose Numerator: Profit Margin. Ratio Choose Denominator: Profit margin ratio Profit margin ratio 0 % 1 Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req 9 Req 10 Req 11 Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: 1 1 Total Asset Turnover Total asset tumover o times 1 Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req7 Reg 8 Req9 Req 10 Reg 11 Compute the return on total assets. (10) Choose Numerator: 1 Return on Total Assets Choose Denominator: Return on Total Assets = Return on total assets 1 11 0 % Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the return on common stockholders' equity. (11) Choose Numerator: Return on Common Stockholders' Equity Choose Denominator = Return On Common Stockholders' Equity Return on common stockholders' equity 0% Reg 10

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