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(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,

(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 equity. (Do not round intermediate calculations.) image text in transcribed
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. $47,900; total assets, $189,400; common stock, $89,000; and retained earnings, $34,657) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 22,000 Accounts payable 8,800 Acerued wages payable 31,000 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,500 Common stock 149,300 Retained earnings $ 251,750 Total liabilities and equity $ 17,500 4,600 4,600 68,400 89,000 67,650 $ 251,750 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 456,600 Cost of goods sold 298, 250 Gross profit 158,350 Operating expenses 98,600 Interest expense 4.500 Income before taxes 55,250 Income tax expense 22,257 Net income $ 32,993

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