At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 Sales 2021 2020 $ 102,700 $ 52,000 77,000 59,000 71,800 98,500 5,200 7,000 256,700 216,500 132,000 (31,000) $ 357,700 $ 33,000 123,000 (13,000) $ 326,500 $ 42,000 6,800 16,600 4,200 5,400 44,000 64,000 38,000 68,000 82,000 132,000 236,000 168,000 39,700 26,500 $ 357,700 $ 326,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 718,000 419,000 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 299,000 75,000 66,600 157,400 2,800 160,200 44,690 $ 115,510 Additional Information a. A $30,000 notes payable is retired at its $30,000 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 $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.