Question

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $49,900; total assets, $259,400; common stock, $81,000; and retained earnings, $41,666.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $453,600 Cost of goods sold 297,750 Gross profit 155,850 Operating expenses 99,300 Interest expense 5,000 Income before taxes 51,550 Income taxes 20,766 Net income $30,784 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash $18,000 Accounts payable $17,500 Short-term investments 8,600 Accrued wages payable 4,400 Accounts receivable, net 28,600 Income taxes payable 4,500 Notes receivable (trade)* 6,000 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,600 Common stock 81,000 Plant assets, net 150,300 Retained earnings 72,450 Total assets $250,250 Total liabilities and equity $250,250 * These are short-term notes receivable arising from customer (trade) sales. Required:(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 common stockholders' equity. (Do not round intermediate calculations.)

Answer 1

Answer to Question 1:

Answer to Question 6:

Answer to Question 7 and Question 11:

Answer to Question 8 and Question 9:

Answer to Question 10: