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, $56,900; total assets, $189,400; common stock, $82,000; and retained earnings, $48,551.)

CABOT CORPORATION
Balance Sheet
December 31 of current year
Assets		Liabilities and Equity
Cash	$ 14,000	Accounts payable	$ 16,500
Short-term investments	9,200	Accrued wages payable	4,800
Accounts receivable, net	32,000	Income taxes payable	4,500
Merchandise inventory	38,150	Long-term note payable, secured by mortgage on plant assets	63,400
Prepaid expenses	2,750	Common stock	82,000
Plant assets, net	153,300	Retained earnings	78,200
Total assets	$ 249,400	Total liabilities and equity	$ 249,400

CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales	$ 449,600
Cost of goods sold	296,850
Gross profit	152,750
Operating expenses	98,500
Interest expense	4,600
Income before taxes	49,650
Income tax expense	20,001
Net income	$ 29,649