2019 2018 $ 86,900 66,500 64,800 4,500 222,700 125,000 (27,500) $320,200 $ 45,000 52,000 88,000 5,600 190,600 116,000 (9.500) $ 297,100 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 26,000 6, 100 3,500 35,600 30, 200 65,800 $ 31,500 15,200 4,000 50,700 61,000 111,700 222,800 32,480 $320,200 161,080 24,480 $ 297,180 $683,000 412, eee 271,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $59,689 Other expenses 68,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 127,600 143,400 2,100 145,500 43,990 $101,510 Additional Information a. A $30,800 note payable is retired at its $30,800 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $58,600 cash. d. Received cash for the sale of equipment that had cost $49,600. yielding a $2,100 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.