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Saved Chapter 13 Quiz He 4 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, $199,400; common stock, $83,000; and retained earnings, $35,857) Skipped CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 455,600 Cost of goods sold 296,950 Gross profit 158,650 Operating expenses 98,700 Interest expense 4,700 Income before taxes 55,250 Income taxes 22,257 Net Income $ 32,993 $ CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity $ 16,000 Accounts payable 8,600 Accrued wages payable 30,200 Income taxes payable 3,500 34,150 Long-term note payable, secured by mortgage on plant assets 2,700 Common stock 148,300 Retained earnings $ 243,450 Total liabilities and equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise Inventory Prepaid expenses Plant assets, net Total assets 16,500 3,800 3,900 67,400 83,000 68.850 $ 243,450 * These are short-term notes receivable arising from customer (trade) sales. 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.) Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Denominator: Choose Numerator: 1 11 Current Ratio II Current ratio 0 to 1 II 2017: (2) Acid-Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 0 to 1 2017: Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Numerator: I Choose Denominator: Days Days Sales Uncollected Days sales uncollected 2017: 0 days Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Reg Req5 Req6 Req 7 Req 8 Reg 9 Compute the days' sales in inventory. (5) Choose Numerator: Merchandise inventory Days' Sales in Inventory 1 Choose Denominator: Days Cost of goods sold X 365 1 = Days' Sales in Inventory Days' sales in inventory days 2017: Reg 4 Req 6 > (6) debt-to-equity on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Reg Compute the debt-to-equity ratio. (6) Choose Numerator: Total liabilities 2017: Debt-to-Equity Ratio Choose Denominator: 1 Total equity 1 Debt-to-Equity Ratio Debt-to-equity ratio = to 1 Req 7 Req 9 Complete this question by entering your answers in the tabs below. F keq 9 Reg 8 Req 3 Req 1 and 2 Req4 Reg 6 Req 7 Reg 5 Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover 1 Choose Denominator: 1 Total Asset Turnover Total asset turnover Il 2017: 1 0 times

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