CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 9,400 Accrued wages payable 4,800 Accounts receivable, net 31,000 Income taxes payable 4,600 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 71,400 Prepaid expenses 2,650 Common stock 84,000 Plant assets, net 151,300 Retained earnings 60,200 Total assets $ 244,500 Total liabilities and equity $ 244,500 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 298,250 Gross profit 157,350 Operating expenses 98,700 Interest expense 4,000 Income before taxes 54,650 Income tax expense 22,015 Net income $ 32,635