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, $50,900; total assets, $239,400; common stock, $80,000; and retained earnings, $54,698.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 16,000 Accounts payable $17,500 8,800 Accrued wages payable 2,800 32,200 Income taxes payable 3,000 38,150 Long-term note payable, secured by mortgage on plant assets 64,400 3,000 Common stock 80,000 153,300 Retained earnings 83,750 Total assets $ 251,450 Total liabilities and equity $251,450 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $450,600 Cost of goods sold 298,050 Gross profit 152,550 Operating expenses 99,600 Interest expense 4,300 Income before taxes 48,650 Income tax expense 19,598