FIELDS INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 91,000 $ 32,200 Accounts receivable, net Inventory 76,000 65,000 59,000 90,000 7, 400 Prepaid expenses 5,900 237,900 189,000 (48,000) $378,900 Total current assets 188, 600 Equipment Accum. depreciation-Equipment 175, 000 (16,000) Total assets $347, 600 Liabilities and Equity Accounts payable $ 28,000 8,000 4,100 $34,000 Wages payable Income taxes payable 20,000 4,600 Total current liabilities 40,100 35,000 58, 600 Notes payable (long term) 70,000 Total liabilities 75,100 128,600 Equity Common stock, $5 par value Retained earnings 250,000 53, 800 180, 000 39,000 $378,900 $347, 600 Total liabilities and equity FIELDS TNC. Income Statement For Year Ended June 30, 2017 Sales $998,000 Cost of goods sold Gross profit 611,000 387,000 Operating expenses Depreciation expense $83,000 99,000 Other expenses Total operating expenses 182,000 205,000 Other gains (losses) Gain on sale of equipment Income before taxes 6,100 211,100 Income taxes expense 64, 620 $146, 480 Net income Additional Information a. A $35,000 note payable is retired at its $35,000 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 $81,000 cash. d. Received cash for the sale of equipment that had cost $67,000, yielding a $6,100 gain. . Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Cersh Jun 30 Accounts recehable, net Jun 30 Accounts payable Cash 3 Depreciation expense Jun 30 Accumulated depreciation-Equlpment Other expersses Jun 30 Wages payable Prepaid expenses Cash Jun 30 Cash Accumulated depreclation- Equipment Equipment Gain on sale of equipment 6 Jun 30 Income taxes payable Cash Notes payable (long-term) Jun 30 7 Cash Equipment Jun 30 Cash Cash 9 Jun 30 Common stock, 85 par value Sales Jun 30 10 Gain on sale of equipment income summary income summary Jun 30 11 Cost of goods sold Cher expenses income taxes expense income summar Jun 30 12 Retained eamings Re:ained eanings Jun 30 13 Cesh N