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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

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, $179,400; common stock, $90,000; and retained earnings, $46,536.)image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $451,600 296,950 Gross profit Operating expenses Interest expense 154,650 98,600 4,700 Income before taxes Income taxes 51,350 20,686 Net income S 30,664 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 $ 16,500 4,400 3,600 $ 22,000 8,400 29,200 7,000 32,150 3,050 154,300 by mortgage on plant assets Common stock Retained earnings 64,400 90,000 77,200 Total assets $ 256,100 Total liabilities and equity $ 256,100 * These are short-term notes receivable arising from customer (trade) sales

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