GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional Information. FIELDS INCORPORATED Corparative Balance Sheets June 30, 2019 and 2018 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 Cost of goods sold Gross profit FIELDS INCORPORATED Income Statement For Year Ended June 30, 2019 2019 2018 $91,000 $ 32,200 76,000 59,000 65,000 90,000 5,900 7,400 188,600 237,900 189,000 (48,000) $ 378,900 $ 28,000 8,000 175,000 (16,000) $ 347,600 $ 34,000 20,000 4,100 4,600 40,100 58,600 35,000 78,800 75,100 128,600 250,000 $3,800 180, 39,000 $ 378,900 $ 347,600 $998,000 611,000 387,000 Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $83,000 99,000 $182,000 205,000 6,100 211,100 64,620 $ 140,480 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 581000 cash d. Received cash for the sale of equipment that mac cost $67000, yielding a $6.100 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