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, $209,400; common stock, $85,000; and retained earnings, $35,253.) 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 $ 455,600 298,250 157,350 98,700 4,900 53,750 21,653 $ 32,097 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory $ 22,000 Accounts payable $ 16,500 9,000 Accrued wages payable 4,000 28,600 Income taxes payable 3,600 30,150 Long-term note payable, secured by 63,400 mortgage on plant assets Prepaid expenses 2,800 Common stock 85,000 Plant assets, net 147,300 Retained earnings 67,350 Total assets $ 239,850 Total liabilities and equity $ 239,850