Problem 13-4A Calculation of financial statement ratios LO P3 Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $48,900; total assets, $239,400; common stock, $86,000; and retained earnings, $32,026.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $449,600 297,850 151,750 99,500 4,400 Gross proft Operating expenses Interest expense ncome before taxes Income taxes 47,850 19,276 Net income 28,574 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 $ 12,000 9,000 $ 17,500 3,200 2,900 5,500 32,150 2,850 148,300 by mortgage on plant assets Common stock Retained earnings 68,400 86,000 60,600 Total assets $238,600 Total liabilities and equity $ 238,600