Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amour at December 31 of the prior year were inventory, $49,900; total assets, $229,400; common stock, $87,000; and retained eamings. $36,345.) 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 $ 448,600 297,650 150,950 98,600 4,700 47,650 19,195 $ 28,455 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 18,000 Accounts payable 9,200 Accrued wages payable Income taxes payable $ 16,500 3,200 31,200 4,400 34,150 Long-term note payable, secured by 72,400 mortgage on plant assets 87,000 64,800 $ 248,300 2,450 Common stock 153,300 Retained earnings $ 248,300 Total liabilities and equity