Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4)...

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Accounting

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.)

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $47,900; total assets, $229,400; common stock, $85,000; and retained earnings, $43,279.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2017
Sales $ 456,600
Cost of goods sold 297,350
Gross profit 159,250
Operating expenses 99,100
Interest expense 4,100
Income before taxes 56,050
Income taxes 22,579
Net income $ 33,471

CABOT CORPORATION Balance Sheet December 31, 2017
Assets Liabilities and Equity
Cash $ 22,000 Accounts payable $ 18,500
Short-term investments 9,400 Accrued wages payable 5,000
Accounts receivable, net 32,200 Income taxes payable 3,900
Notes receivable (trade)* 6,000
Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 72,400
Prepaid expenses 2,500 Common stock 85,000
Plant assets, net 153,300 Retained earnings 76,750
Total assets $ 261,550 Total liabilities and equity $ 261,550

* These are short-term notes receivable arising from customer (trade) sales.

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