selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet mounts at December 31 of the prior year were inventory, $48,900; total assets, $249,400; common stock, $89,000; and etained earnings, $30,866.) $ 16,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,200 Accrued wages payable $ 18,500 4,800 30,400 Income taxes payable 3,500 34,150 Long-term note payable, secured by mortgage on plant assets -68,400 2,800 Common stock. 89,000 153,300 Retained earnings 61,650 $ 245,850 Total liabilities and equity $ 245,850 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 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 $ 452,600 297,850 154,750 99,100 4,100 51,550 20,766 $ 30,784