Homework Saved Help Save & Exit Check Problem 17-4A Calculating financial statement ratios LO P3 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, $47,900; total assets, $249,400, common stock, $86,000; and retained earnings. $44.292.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,758 Gross profit 150,850 Operating expenses 99,400 Interest expense 4.800 Income before taxes 46,650 Income tax expense 18,792 Net Income $ 27,858 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 18,000 Accounts payable 8,600 Accrued wages payable 33,800 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,500 Connon stock 150,300 Retained earnings $ 247,350 Total liabilities and equity 17,500 3,400 2,900 65,400 Prepaid expenses Plant assets, net Total assets 86,000 22, 150 $ 247,350