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, $48,900; total assets, $179,400; common stock, $82,000; and retained earnings, $27,644.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses $ 10,000 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Accounts payable $ 16,500 8,600 Accrued wages payable 3.400 30,600 Income taxes payable 4,400 30, 150 Long-term note payable, secured by 67,400 mortgage on plant assets Plant assets, net 3,000 149,300 Common stock 82,000 Retained earnings 57,950 Total assets $ 231,650 Total liabilities and equity $ 231,650 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 451,600 297,450 Gross profit 154,150 Operating expenses 98,500 Interest expense 4,900 Income before taxes 50,750