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, $199,400; common stock, $82,000; and retained earnings, $33,888.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2018
Sales	$	450,600
Cost of goods sold		298,050
Gross profit		152,550
Operating expenses		99,300
Interest expense		4,500
Income before taxes		48,750
Income tax expense		19,638
Net income	$	29,112

CABOT CORPORATION Balance Sheet December 31, 2018
Assets				Liabilities and Equity
Cash	$	10,000		Accounts payable	$	17,500
Short-term investments		9,000		Accrued wages payable		4,600
Accounts receivable, net		34,000		Income taxes payable		4,500
Merchandise inventory		34,150		Long-term note payable, secured by mortgage on plant assets		66,400
Prepaid expenses		2,550		Common stock		82,000
Plant assets, net		148,300		Retained earnings		63,000
Total assets	$	238,000		Total liabilities and equity	$	238,000

Compute the debt-to-equity ratio.

(6)	Debt-to-Equity Ratio
	Choose Numerator:	/	Choose Denominator:	=	Debt-to-Equity Ratio
		/		=	Debt-to-equity ratio
2018:		/		=	0	to 1

Compute the times interest earned.

(7)	Times Interest Earned
	Choose Numerator:			/	Choose Denominator:	=	Times Interest Earned
		+		/		=	Times interest earned
2018:		+		/		=	0	times

Compute the profit margin ratio.

(8)	Profit Margin Ratio
	Choose Numerator:	/	Choose Denominator:	=	Profit margin ratio
		/		=	Profit margin ratio
2018:		/		=	0	%