Exercise 122 Presented below is the income statement of Cowan, Inc.: Sales revenue Cost of goods sold $367,100 223,800 Gross profit $143,300 Operating expenses 86,600 Income before income taxes 56,700 Income taxes 25,300 Net income $ 31,400 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $15,000 Accounts receivable 20,000 Inventories $18,600 Salaries payable (operating expenses) 7,600 Accounts payable 14,900 Income taxes payable 2,200 The company also indicates that depreciation expense for the year was $17,100 and that the deferred tax liability account increased $2,300.