Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $50,900; total assets, $219,400; common stock, $115,000; and retained earnings, $53,148.) CABOT CORPORATION Income Statement For Year Ended December 31, 2013 Sales Cost of goods sold $453,600 297,950 Gross profit Operating expenses Interest expense 155,650 98,900 4,900 Income before taxes Income taxes 51,850 20,887 Net income 30,963 CABOT CORPORATION Balance Sheet December 31, 2013 Liabilities and Equity Accounts payable Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net S 10,000 9,200 Accrued wages payable 31,800 ncome taxes payable S 18,500 5,000 4,800 6,000 32,150 2,900 148,300 Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings 70,400 115,000 26,650 Total assets s240,350 Total liabilities and equity $240,350 These are short-term notes receivable arising from customer (trade) sales