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, $53,900; total assets, $229,400; common stock, $88,000; and retained earnings, $41,961.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable $ 14,000 9,600 Accrued wages payable 33,200 36,150 2,650 153,300 Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings $ 248,900 Total liabilities and equity 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 $ 454,600 298,350 156,250 98,600 4,500 53,150 21,411 $ 31,739 $ 18,500 3,000 3,300 62,400 88,000 73,700 $ 248,900