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, $239,400; common stock, $89,000; and retained earnings, $29,033.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net. Total assets CABOT CORPORATION Income Statement $ 10,000 Accounts payable 8,200 Accrued wages payable 29,400 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,900 Common stock 154,300 Retained earnings $ 244,950 Total liabilities and equity 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 $454,600 297,050 157,550 99,300 4,300 53,950 21,733 $ 32,217 $ 19,500 4,800 3,000 67,400 89,000 61,250 $244,950