2 Problem 13-4A Calculation of financial statement ratios LO P3 15 points Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income eBook $ 448,600 297,250 151,350 98,600 4,100 48,650 19,598 $ 29,052 Print References CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory 10,000 Accounts payable $ 17,500 3,200 3,300 8,400 Accrued wages payable 29,200 Income taxes payable 4,500 32,150 Long-term note payable, secured 63,400 by mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,650 Common stock 153,300 Retained earnings 90,000 62,800 $ 240,200 $ 240,200 Total liabilities and equity These are short-term notes receivable arising from customer (trade) sales. Required Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req4 Req Req 6 Req 7Req 8 Req 9 Req 10 Req 11 Compute the days' sales in inventory. Days' Sales in Inventory Choose Numerator: Choose Denominator: x DaysDays' Sales in Inventory 2017: 0 days Req 4 Req 6 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the debt-to-equity ratio. Debt-to-Equity Ratio Choose Numerator:Choose Denominator: Debt-to-Equity Ratio -Debt-to-Equity Ratio 2017: 0 to 1 Req 6 Req 7 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5Req 6Req 7Req 8 Req 9Req 10Req 11 Compute the times interest earned Times Interest Choose Numerator: Choose Denominator: Times Interest Earned - Times interest earned 2017: KReq 0 Req8 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req ZReq 81 Req 9 Req 10 Req 11 Compute the profit margin ratio. Profit Margin Ratio Choose Denominator:Profit margin ratio Choose Numerator: Profit margin ratio 2017: Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the total asset turnover. Total Asset Turnover Choose Numerator Chooa Denominaton - Total Asset Turnover | Total Asset Turnover 2017 0 times Req 8 Req 10> Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the return on total assets. (10) Return on Total Assets Choose Numerator Choose Denominator: Return on Total Assets Return on Total Assets = 2017: K Req 9 Req 11 > Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 Req 4 Req 5 Rq 6 Req 7Req 8Req 9Req 10Req 11 Compute the return on common stockholders' equity Return on Common Stockholders' Equity Choose Numerator: Choose Denominator - Return On Common Stockholders E Return On Common Stockholders' Equity 2017: Req 10 Req 11