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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

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, $49,900; total assets, $189,400; common stock, $87,000; and retained earnings, $31,139.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales $ 456,600
Cost of goods sold 297,350
Gross profit 159,250
Operating expenses 99,200
Interest expense 4,100
Income before taxes 55,950
Income tax expense 22,539
Net income $ 33,411

CABOT CORPORATION Balance Sheet December 31
Assets Liabilities and Equity
Cash $ 14,000 Accounts payable $ 15,500
Short-term investments 9,400 Accrued wages payable 3,000
Accounts receivable, net 31,400 Income taxes payable 3,800
Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 69,400
Prepaid expenses 3,000 Common stock 87,000
Plant assets, net 149,300 Retained earnings 64,550
Total assets $ 243,250 Total liabilities and equity $ 243,250

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Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 Compute the times interest earned. (7) Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned + / Times interest earned 1 o times Req 1 and 2 Req3 Req 4 Req 5 Req 6 Req 7 Req8 Req 9 Req 10 Req 11 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: 1 1 Profit margin ratio Profit margin ratio 0 % 1 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. (9) Total Asset Turnover Choose Numerator: 1 Choose Denominator: Total Asset Turnover 1 Total asset turnover 1 = 0 times Req 1 and 2 Req3 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: 1 Choose Denominator: Return on Total Assets 1 = Return on total assets 1 = 0 % Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Reg 7 Req 8 Req 9 Reg 10 Reg 11 Compute the return on common stockholders' equity. (11) Return on Common Stockholders' Equity Choose Numerator: Choose Denominator = Return On Common Stockholders' Equity Return on common stockholders' equity = 1 /

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