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, $49,900; total assets, $169,400; common stock, $88,000; and retained earnings, $33,355.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 14,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 9,000 Accrued wages payable 33,400 Income taxes payable 30,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 153,300 Retained earnings Total assets $ 242,900 Total liabilities and equity 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 $ 451,600 297,150 154,450 98,900 4,400 51,150 20,605 $ 30,545 $ 19,500 4,200 3,900 63,400 88,000 63,900 $ 242,900