2 ints eBook Print ferences Problem 13-4A Calculating financial statement ratios LO P3 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, $55,900; total assets, $199,400; common stock, $81,000; and retained earnings, $45,626.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income $ 452,600 297,550 155,050 99,300 4,300 $1,450 20,726 $ 38,724 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 $ 16,000 Accounts payable 33,400 Income taxes payable Liabilities and Equity $ 19,500 8,600 Accrued wages payable 4,000 4,700 42,150 Long-term note payable, scured by 64,400 mortgage on plant assets 2,500 Common stock 81,000 76,350 $ 249,950 147,300 Retained earnings $ 249,950 Total liabilities and equity