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 Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income $ 447,600 297,650 149,950 99,100 4,000 46,850 18,873 $ 27,977 Assets 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 69,000 $ 248,400 148,300 Retained earnings $ 248,400 Total liabilities and equity