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, $47,900; total assets, $229,400; common stock, $83,000; and retained earnings, $42,990.) 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 $ 451,600 298,450 153,150 99,400 4,500 49,250 19,840 $ 29,410 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 10,000 Accounts payable 9,000 Accrued wages payable 33,800 Income taxes payable 36,150 Long-term note payable, secured by mortgage on plant assets 3,150 Common stock 154,300 Retained earnings $ 246,400 Total liabilities and equity $ 16,500 3,200 2,900 68,400 83,000 72,400 $ 246,400