Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $229,400; common stock, $87,000; and retained earnings, $25,215.) Assets Cash Short-term investments. Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement. Cost of goods sold Gross profit $ 8,000 8,800 For Current Year Ended December 31 Sales. $ 455,600 297,050 Operating expenses. Interest expense Income before taxes Income tax expense Net income CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity 31,200 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 152,300 Retained earnings $ 235,550 Total liabilities and equity 158,550 99,000 4,900 54,650 22,015 $ 32,635 Accounts payable Accrued wages payable $ 17,500 3,400 4,400 65,400 87,000 57,850 $ 235,550

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