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, $52,900; total assets, $219,400; common stock, $87,000; and retained earnings, $37,537.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION $ 18,000 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable 8,400 Accrued wages payable 31,000 Income taxes payable 38,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 150,300 $248,400 Retained earnings Total liabilities and equity Income Statement For Current Year Ended December 311 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Required: $ 452,600 297,550 155,050 99,100 4,100 51,850 20,887 $ 30,963 $ 19,500 4,600 3,400 65,400 87,000 68,500 $ 248,400