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, $48,900; total assets, $249,400; common stock, $89,000; and etained earnings, $30,866.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Assets. Cash $ 16,000 Short-term investments. 9,200 Accrued wages payable Accounts receivable, net Merchandise inventory Prepaid expenses Total assets 30,400 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,800 Common stock Plant assets, net 153,300 Retained earnings $ 245,850 Total liabilities and equity CABOT CORPORATION Income Statement $ 18,500 4,800 3,500 68,400 - 89,000 61,650 $ 245,850 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