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, $85,000; and retained earnings, $41,023) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $447,600 Cost of goods sold. 297,650 Gross profit 149,950 Operating expenses 99,100 Interest expense 4,000 Income before taxes 46,850 Income tax expense 18,873 Net income $27,977 Assots Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 22,000 Accounts payable $16,500 8,800 Accrued wages payable 3,200 32,400 Income taxes payable 3,300 34,150 Long-term note payable, secured by mortgage on plant assets 71,400 2,750 Common stock 85,000 148,300 Retained earnings $248,400 Total liabilities and equity 69,000 $248,400 Check m