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, $53,900; total assets, $179,400; common stock, $89,000; and retained earnings, $44,716.) 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 Assets $ 452,600 297,750 154,850 99,000 4,300 51,550 20,766 $ 30,784 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Cash 22,000 Accounts payable $ 69 18,500 Short-term investments 9,200 Accrued wages payable 3,800 Accounts receivable, net 33,000 Income taxes payable 3,300 Merchandise inventory 38,150 Prepaid expenses 2,850 Long-term note payable, secured by mortgage on plant assets Common stock 66,400 89,000 Plant assets, net 151,300 Retained earnings 75,500 Total assets $ 256,500 Total liabilities and equity $ 256,500