Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $47,900; total assets, $239,400; common stock, $84,000; and retained earnings, $41,042.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold S 454,600 297,850 Gross profit Operating expenses Interest expense 156,750 99,000 4,400 Income before taxes Income taxes 53,350 21,492 Net income S 31,858 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 4,400 3,500 S 12,000 9.400 30,000 6,000 34,150 2,850 153,300 by mortgage on plant assets Common stock Retained earnings 65,400 84,000 72,900 Total assets S 247,700 Total liabilities and equity $247,700 These are short-term notes receivable arising from customer (trade) sales