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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, $55,900; total assets, $189,400; common stock, $89,000; and retained earnings, $44,837.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales	$	452,600
Cost of goods sold		296,950
Gross profit		155,650
Operating expenses		99,400
Interest expense		4,400
Income before taxes		51,850
Income tax expense		20,887
Net income	$	30,963

CABOT CORPORATION Balance Sheet December 31
Assets				Liabilities and Equity
Cash	$	20,000		Accounts payable	$	18,500
Short-term investments		9,200		Accrued wages payable		4,800
Accounts receivable, net		32,800		Income taxes payable		2,900
Merchandise inventory		40,150		Long-term note payable, secured by mortgage on plant assets		67,400
Prepaid expenses		2,950		Common stock		89,000
Plant assets, net		153,300		Retained earnings		75,800
Total assets	$	258,400		Total liabilities and equity	$	258,400

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 common stockholders' equity.

(1) Current Ratio Choose Denominator: Choose Numerator: 1 ! Current Ratio - Current ratio to 1 1 (2) Choose Numerator: Acid-Test Ratio 1 Choose Denominator: Acid-Test Ratio - Acid-Test Ratio to 1 (3) Choose Numerator: Days' Sales Uncollected Choose Denominator: x Days - Days Sales Uncollected Days sales uncollected days 1 Compute the inventory turnover. Choose Numerator: Inventory Turnover Choose Denominator: - Inventory Turnover - Inventory turnover times 1 Compute the days' sales in inventory. (5) Days' Sales In Inventory Choose Numerator: 1 Choose Denominator: Days = Days' Sales In Inventory = Days' sales in inventory days Compute the debt-to-equity ratio. Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Equity Ratio 1 Choose Denominator: 1 - Debt-to-Equity Ratio Debt-to-equity ratio to 1 1 Compute the times interest earned. 7) Times Interest Earned Choose Denominator Choose Numerator: Times Interest Earned Times interest earned times Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator Choose Numerator: 1 / - Profit margin ratio - Profit margin ratio 1 % ute the return on common stockholders' equity. Return on Common Stockholders' Equity 1 Choose Denominator Choose Numerator: Return On Common Stockholders' Equity - Retum on common stockholders' equity Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: 1 = Total Asset Turnover Total asset turnover times 1 Compute the return on total assets. (10) Return on Total Assets 1 Choose Denominator: Choose Numerator: Return on Total Assets Return on total assets 1

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