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, $54,900; total assets, $239,400; common stock, $81,000; and retained earnings, $34,930.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 454,600 298,350 Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 156,250 98,600 4,700 52,950 21,330 $31,620 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 $10,000 Accounts payable $ 17,500. 8,600 Accrued wages payable 4,800 30,200 Income taxes payable 4.600 38,150 Long-term note payable, secured by 65,400 2,600 mortgage on plant assets Common stock 81,000 66,550 $239,850 150,300 Retained earnings $ 239,850 Total liabilities and equity