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, $229,400; common stock, $87,000; and retained earnings. $20,469.) Merchandise inventory Assets Cash Short-term investments Accounts receivable, net CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity 14,000 Accounts payable 8,600 Accrued wages payable 28,800 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets $ 17,500 4,800 3,200 71,400 Prepaid expenses 2,900 Plant assets, net 149,300 Common stock Retained earnings 87,000 51,850 Total assets $ 235,750 Total liabilities and equity $ 235,750 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $ 454,600 297,850 156,750 Operating expenses Interest expense Income before taxes Tarnan A 99,500 4,700 52,550 21 140