Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31, 2016, were inventory, $53,900; total assets, $199,400; common stock, $83,000; and retained earnings, $44,580.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes Net income 449,600 297,050 152,550 98,800 4,400 49,350 19,880 29,470 CABOT CORPORATION Balance Sheet December 31, 2017 Liabilities and Equity Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventory 10,000 Accounts payable 33, 000 Income taxes payable 32,150 Long-term note payable, secured by 19,500 3,800 3,500 9,200 Accrued wages payable 8,000 63,400 mortgage on plant assets Prepaid expenses Plant assets, net Total assets 2,600 Common stock 152, 300 Retained earnings 83,000 74,050 247,250 247,250 Total liabilities and equity