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, $50,900; total assets, $189,400; common stock, $87,000; and retained earnings, $37,847.) cabot corporation balance sheet december 31 of current year assets liabilities and equity cash $ 20,000 accounts payable $ 19,500 short-term investments 9,600 accrued wages payable 3,000 accounts receivable, net 30,000 income taxes payable 3,300 merchandise inventory 32,150 long-term note payable, secured by mortgage on plant assets 63,400 prepaid expenses 3,050 common stock 87,000 plant assets, net 152,300 retained earnings 70,900 total assets $ 247,100 total liabilities and equity $ 247,100 cabot corporation income statement for current year ended december 31 sales $ 455,600 cost of goods sold 297,250 gross profit 158,350 operating expenses 98,900 interest expense 4,100 income before taxes 55,350 income tax expense 22,297 net income $ 33,053
