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, $46,900; total assets. $219,400; common stock, $88,000; and retained earnings. $46,013.) 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 $ 20,000 Accounts payable 9,400 Accrued wages payable 33,600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2,800 Common stock 148,300 Retained earnings $254,250 Total liabilities and equity Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 448,600 298,150 Gross profit 150,450 Operating expenses 98,600 Interest expense 4,900 Incone before taxes 46,950 Income tax expense 18,913 Net income $28,037 $19,500 3,000 4,500 64,400 $8,000 74,058 $ 254,250