Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $49,900; total assets, $239,400; common stock, $82,000; and retained earnings, $54,094.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $448,600 296,950 Gross profit Operating expenses Interest expense 151,650 99,500 5,000 Income before taxes Income taxes 47,150 18,994 Net income $ 28,156 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 $19,500 3,200 3,700 $ 22,000 8,000 31,600 3,000 40,150 3,000 147,300 by mortgage on plant assets Common stock 64,400 82,000 82,250 Retained earnings Total assets $255,050 Total liabilities and equity $255,050 These are short-term notes receivable arising from customer (trade) sales