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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 yearwere inventory, $52,900; total assets, $239,400, common stock, $82,000; and retained earnings. $40,908) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $456,680 Cost of goods sold 298,250 Gross profit 158, 350 Operating expenses 98,700 Interest expense 3,989 Income before taxes 55,750 Income tax expense 22,458 Net income $ 33,292 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 20,000 Accounts payable 8,800 Accrued wages payable $ 18,500 3,600 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 4,700 65,400 29, 200 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,950 Common stock 149,380 Retained earnings $248,400 Total liabilities and equity 82,000 74,200 $248,400 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. Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Current Ratio Choose Numerator: Choose Denominator: Current Ratio Current ratio 0 to 1 1 (2) Acid Test Ratio Choose Denominator: Choose Numerator: Acid-Test Ratio Acid-Test Ratio 0 to 1 Ruge Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Req 8 Req 9 Reg 10 Req 11 Compute the days' sales uncollected. 5 (3) Days' Sales Uncollected Choose Denominator: Days Choose Numerator: I Days Sales Uncollected - Days sales uncollected X 0 days Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Req 10 Req 11 Compute the inventory turnover. Inventory Turnover Choose Denominator: Choose Numerator: Inventory Turnover Inventory turnover O times 1 Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req9 Reg 10 Reg 11 Compute the days' sales in inventory. (5) Choose Numerator: Days' Sales in Inventory Choose Denominator: x X X Days Days' Sales in Inventory Days' sales in inventory o days Req6 > Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Reg 9 Req 10 Reg 11 Compute the times interest earned. (7) Times. Interest Eamed Choose Denominator: Choose Numerator: Times Interest Earned = Times interest eamed = 0 times * Req 6 Req8 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Req 9 Req 10 Reg 11 Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio Choose Denominator: = Profit margin ratio Profit margin ratio 0 % Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req 4 Reg 5 Req 6 Reg 7 Req 8 Reg 9 Req 10 Reg 11 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets Choose Denominator: Return on Total Assets Return on total assets 0 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Regs Reg 6 Req 7 Reg 8 Req9 Reg 10 Reg 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Denominator Choose Nurnerator: - Return On Common Stockholders' Equity Retum on common stockholders' equity

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