1 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit: selected bala sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $189,400; common stock, $87,000; and retained earnings, $31,511.) ped CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 451,600 Cost of goods sold 298,550 Gross profit 153,050 Operating expenses 99,000 Interest expense 4,500 Income before taxes 49,550 Income tax expense 19,961 Net income $ 29,589 bok int ences Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 18,000 Accounts payable 8,200 Accrued wages payable 32,600 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,750 Common stock 142,300 Retained earnings $ 243,000 Total liabilities and equity $ 15,500 3,400 3,600 72,400 87,000 61,100 $ 243,000 Compute the days' sales in Inventory. (5) Days Sales In Inventory Choose Denominator: X Choose Numerator: 1 Days / Days' Salos in Inventory Days' sales in inventory o days / Compute the debt-to-equity ratio. (6) Debt-to-Equity Ratio Choose Denominator: Choose Numerator: 1 Debt-to-Equity Ratio = Debt-to-equity ratio 0 to 1 1 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 11 Reg 8 Reg 9 Reg 10 Compute the times interest earned. (7) Times Interest Earned 1 Choose Denominator: 11 Choose Numerator: Times Interest Earned Times interest earned = o times Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Req 5 Reg 6 Req 7 Req8 Req 9 Req 10 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: / Profit margin ratio Profit margin ratio 0 % Compute the total asset turnover. Choose Numerator: Total Asset Turnover 1 Choose Denominator: 1 11 Total Asset Turnover Total asset turnover 0 times 1 equity rato, Inventory, 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 Req 4 Reg 5 Reg 6 Req 7 Req 8 Reg 9 Rede Compute the return on total assets. (10) Return on Total Assets Choose Denominator: es Choose Numerator: 1 Return on Total Assets Return on total assets 1 HI / 0 %