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Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total assets, $249,400; common stock, $88,000; and retained earnings, $28,156.)

CABOT CORPORATION Income Statement For Year Ended December 31, 2017
Sales $ 450,600
Cost of goods sold 298,250
Gross profit 152,350
Operating expenses 99,600
Interest expense 4,700
Income before taxes 48,050
Income taxes 19,356
Net income $ 28,694

CABOT CORPORATION Balance Sheet December 31, 2017
Assets Liabilities and Equity
Cash $ 8,000 Accounts payable $ 16,500
Short-term investments 8,400 Accrued wages payable 3,200
Accounts receivable, net 31,200 Income taxes payable 4,100
Notes receivable (trade)* 5,500
Merchandise inventory 30,150 Long-term note payable, secured by mortgage on plant assets 69,400
Prepaid expenses 2,500 Common stock 88,000
Plant assets, net 152,300 Retained earnings 56,850
Total assets $ 238,050 Total liabilities and equity $ 238,050

1) Compute the days' sales in inventory.

2) Compute the debt-to-equity ratio.

3) Compute the times interest earned.

4) Compute the profit margin ratio.

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