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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, 2014, were inventory, $49,900; total assets, $179,400; common stock, $86,000; and retained earnings, $42,247.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $449,600 297,450 Gross profit Operating expenses Interest expense 152,150 99,200 4,800 Income before taxes Income taxes 48,150 19,397 Net income $ 28,753 CABOT CORPORATION Balance Sheet December 31, 2015 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Liabilities and Equity Accounts payable Accrued wages payable Income taxes pavable Long-term note payable, secured $ 19,500 4,400 4,800 $ 22,000 8,000 28,600 3,000 38,150 3,050 148,300 by mortgage on plant assets Common stock Retained earnings 65,400 86,000 71,000 Total assets $251,100 Total liabilities and equity $251,100 These are short-term notes receivable arising from customer (trade) sales