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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, $$55,900$; total assets, $$249,400$; common stock, $$89,000$; and retained earnings, $$36,943.)$

CABOT CORPORATION

Balance Sheet

December $31$ of current year

Assets Liabilities and Equity

Cash $ $20,000$ Accounts payable $ $17,500$

Short$-$term investments $9,200$ Accrued wages payable $3,600$

Accounts receivable, net $30,800$ Income taxes payable $4,700$

Merchandise inventory $36,150$ Long$-$term note payable, secured by mortgage on plant assets $69,400$

Prepaid expenses $2,700$ Common stock $89,000$

Plant assets, net $152,300$ Retained earnings $66,950$

Total assets $ $251,150$ Total liabilities and equity $ $251,150$

CABOT CORPORATION

Income Statement

For Current Year Ended December $31$

Sales $ $452,600$

Cost of goods sold $298,550$

Gross profit $154,050$

Operating expenses $99,000$

Interest expense $4,800$

Income before taxes $50,250$

Income tax expense $20,243$

Net income $ $30,007$