Assets Cash IKIBAN INC. Comparative Balance Sheets June 30, 2021 and 2020 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 Share capital, $5 par value Retained earnings Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Profit before tax Income tax expense Net profit $62,500 70,900 2021 $103,100 78,000 76,800 5,700 $ 54,400 62,700 106,000 8,000 263,600 231,100 163,000 154,000 (33,500) (15,500) $393,100 $369,600 $ 38,000 7,300 4,700 50,000 43,000 93,000 $732,600 437,000 295,600 2020 133,400 162,200 246,000 186,000 54,100 38,400 $393,100 $369,600 2,000 164,200 45,190 $119,010 $ 49,500 17,600 5,100 72,200 73,000 145,200

IKIBAN INC. Additional Information a. \\( A \\$ 30,000 \\) note payable is retired at its \\( \\$ 30,000 \\) carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net profit and cash dividends paid. c. New equipment is acquired for \\( \\$ 73,200 \\) cash. d. Received cash for the sale of equipment that had cost \\( \\$ 64,200 \\), yielding a \\( \\$ 2,000 \\) 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