Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $52,900; total assets, $239,400; common stock, $89,000; and retained earnings, $37,832.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $454,600 297,550 Gross profit Operating expenses Interest expense 157,050 98,900 4,700 Income before taxes Income taxes 53,450 21,532 Net income $ 31,918 CABOT CORPORATION Balance Sheet December 31, 2015 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory Prepaid expenses Plant assets, net Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured $ 17,500 3,000 3,400 $ 14,000 8,200 29,800 7,500 36,150 3,100 154,300 by mortgage on plant assets Common stock 70,400 89,000 69,750 Retained earnings Total assets $253,050 Total liabilities and equity $253,050 These are short-term notes receivable arising from customer (trade) sales