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Selected year-end financial statements of Cabot Corporation follow. All sales were on credit, selected balance sheet amounts at December 31, 2017, were inventory, $48.900, total assets. $219,400, common stock, $80,000, and retained earnings. $33,708) CABOT CORPORATION Income Statement For Year Ended December 31, 2018 Sales $456,600 Cost of goods sold 296,950 Gross profit 159,658 Operating 99, 100 expenses Interest expense 4,800 Income before 55,750 taxes Income tax 22,458 expense Net income $ 33,292 $ 17,500 4,200 CABOT CORPORATION Balance Sheet December 31, 2018 Assets Liabilities and Equity Cash $ 14,000 Accounts payable Short-term investments 8,480 Accrued wages payable Accounts receivable, 32.800 Income taxes payable net Merchandise 32,150 Long-term note payable, inventory secured by mortgage on plant assets Prepaid expenses 2,650 Common stock Plant assets, net 151, 380 Retained earnings Total assets $241,300 Total liabilities and equity 3,200 69,400 80,000 67,000 $241,300 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. Reg 1 and 2 Req3 Req 4 Req 5 Req6 Req 7 Req8 Req 9 Req 10 Req 11 Compute the current ratio and acid-test ratio. Choose Numerator: Current Ratio Choose Denominator Current Ratio 2018: = = Current ratio to 1 (2) Choose Numerator: Acid-Test Ratio Choose Denominator Acid-Test Ratio = Acid-Test Ratio 2018: to 1 Compute the days' sales uncollected. (3) Days' Sales Uncollected Choose Choose Numerator: 1 X Days - Days Sales Denominator Uncollected Days sales uncollected days 2018: Compute the inventory turnover. Choose Numerator: Inventory Turnover Choose Inventory Denominator: Turnover = Inventory turnover times 2018: Roq 5 ) Compute the days' sales in inventory. (5) Days' Sales in Inventory Choose Numerator: Denominator X Days = Choose Days' Sales in Inventory Days' sales in inventory days 2018: Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Equity Ratio Choose Denominator Debt-to-Equity Ratio Debt-to-equity ratio to 1 2018: Reg 5 Req 7 > Compute the times interest earned. Choose Numerator: Times Interest Earned 1 Choose Denominator: Times Interest Earned Times interest eamed 2018: times Compute the profit margin ratio. (8) Choose Numerator: Profit Margin Ratio Choose Denominator: Profit margin ratio Profit margin ratio 2018: Reg 7 Reg 9 > Compute the total asset turnover. (9) Choose Numerator: Total Asset Turnover Choose Denominator: Total Asset Turnover Total asset turnover times 2018: (Reg 8 Reg 10 > Compute the return on total assets. (10) Choose Numerator: Return on Total Assets Choose Return on Total Denominator: Assets Return on total assets 2018: Reg 9 Reg 11 > Compute the return on common stockholders' equity. Return on Common Stockholders' Equity Choose Numerator: Return On Common 1 Choose Denominator - Stockholders' Equity Return on common stockholders' equity 2018:

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