Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net 2021 $ 74,900 96,500 :24 Total assets Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment 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' 84,800 2020 $ 65,000 72,000 118,000 6,500 9,600 262,700 264,600 145,000 (37,500) $ 370,200 $ 46,000 8,100 136,000 (19,500) $ 381,100 $ 61,500 19,200 5,500 8,000 59,600 88,700 34,200 81,000 93,800 169,700 262,000 181,000 Retained earnings 14,400 30,400 Total liabilities and equity $ 370,200 $ 381,100 IKIBAN INCORPORATED Income Statement Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense For Year Ended June 30, 2021 $ 783,000 432,000 351,000 88,000 79,600 183,400 4,100 187,500 45,990 $ 141,510 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information a. A $46,800 note payable is retired at its $46,800 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 $78,600 cash. d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 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.