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, $52,900; total assets, $259,400; common stock, $85,000; and retained earnings, $36,043.) CABOT CORPORATION Balance Sheet December 311 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net. Merchandise inventory Prepaid expenses Plant assets, net $ 12,000 Accounts payable 8,800 Accrued wages payable 34,000 Income taxes payable 36,150 2,550 154,300 Common stock Long-term note payable, secured by mortgage on plant assets Retained earnings Total assets: $ 247,800 Total liabilities and equity CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 297,450 Gross profit 158,150 Operating expenses 99,400 Interest expense 4,900 Income before taxes 53,850 Income tax expense. 21,693 Not income <32.157 $ 16,500 4,400 4,300 69,400 85,000 68,200 $ 247,800