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Check my work Problem 13-4A Calculating financial statement ratios LO P3 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. $54,900, total assets, $239,400: common stock. $90,000; and retained earnings, $31,018.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,650 Gross profit 154,95 Operating expenses 98,600 Interest expense 4,300 Income before taxes 52,050 Income tax expense 20,968 Net income $ 31,082 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 12,000 Accounts payable 8,400 Accrued wages payable 32,800 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,650 Common stock 150, 300 Retained earnings $ 244,300 Total liabilities and equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 18,500 4.800 4,500 64,400 90,000 62, 100 $ 244,380 Total assets $ 244,300 Total liabilities and equity $ 244,300 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.) 05 Complete this question by entering your answers in the tabs below. Reg 3 Req 1 and 2 Reg 4 Reg 5 Reg 6 Reg 7 Req8 Reg 9 Reg 10 Reg 11 Compute the current ratio and acid-test ratio. (1) Choose Numerator: Current Ratio 1 Choose Denominator: 1 Current liabilities Current Ratio Current ratio oto 1 Current assets 1 (2) Choose Numerator: Quick assets Acid-Test Ratio Choose Denominator: Current liabilities Acid-Test Ratio Acid-Test Ratio 1 0 to 1 1 10 of 10 lestu, (3) Udys 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 Req 5 Req 6 Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Rrig 3 Reg 4 Compute the days' sales uncollected. (3) Days. Sales Uncollected Choose Numerator: 1 Choose Denominator: * Days Accounts Receivable. Net sales X net Days Sales Uncollected Days sales uncollected o days 1 X 13 Showing: (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.) o Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg Reg 5 Reg 6 Req7 Reg 8 Reg 9 Req 10 Reg 11 Compute the inventory turnover. 1 Choose Numerator: Cost of goods sold Inventory Turnover Choose Denominator: Average inventory = = Inventory Turnover Inventory turnover 0 times 1 Plant assets, net Total assets 150,300 Retained earnings $ 244,300 Total liabilities and equity Check my work 62,180 $ 244,300 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. Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Reg 7 Req 8 Reg 9 Reg 10 Req 11 Compute the days' sales in inventory. (5) Days' Sales In Inventory Choose Denominator: Cost of goods sold Choose Numerator: Merchandise inventory Days X Days' Sales In Inventory = Days' sales in inventory o days 7 Save & Ext Submit Plant assets, net Total assets Check my work 150,3ee Retained earnings $ 244,300 Total liabilities and equity 62.100 $ 244,30 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.) 4 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 Reg 5 kego Reg 7 Reg 8 Reg 9 Reg 10 Reg 11 Compute the debt-to-equity ratio. (6) Choose Numerator: Total liabilities Debt-to-Equity Ratio 1 Choose Denominator: Total equity 1 # 3 Debt-to-Equity Ratio Debt-to-equity ratio O to 1 assets, net Total assets 150,380 Retained earnings $ 244,300 Total liabilities and equity Check my work 62,180 $ 244,300 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. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req7 Req 8 Reg 9 Req 10 Reg 11 Compute the times interest earned. 7) Times Interest Earned Choose Numerator: 7 Choose Denominator: Times Interest Earned Income before tax + Interest expense 1 Interest expense Times interest earned + / 0 til Req6 Req8 > Plant assets, net Total assets Check my work 150,380 Retained earnings $ 244,389 Total liabilities and equity 62.100 5 244,300 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. Req 1 and 2 Req3 Reg 4 Reg 5 Req6 Reg 7 ROY 8 Reg 9 Req 10 Reg 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Net Income 1 Net sales 11 Profit margin ratio Profit margin ratio 0 % 1 Total assets Retained earnings $ 244,300 Total liabilities and equity 62,180 $ 244,380 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. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Req 7 Reg 8 Req 9 feq 10 Req 11 Compute the return on total assets. (10) Choose Numerator: Return on Total Assets 1 Choose Denominator: Average total assets = Return on Total Assets Net income Return on total assets 11 0 % Plant assets, net Total assets 150,300 Retained earnings $ 244,300 Total liabilities and equity Check my work 62,100 $ 244,380 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. Reg 4 Reg 5 Req 1 and 2 Reg 3 11 Req 6 Reg 7 Req 8 Reg 9 Reg 10 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity 1 Choose Denominator Average common stockholders' equity Choose Numerator: Preferred dividends = Return On Con = Return on com Net income 1

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