ICE Drilling Inc.'s balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit $1,113,200 568,000 $ 545,200 $ 50,000 307,360 357,360 $ 187,840 13,080 $ 174,760 28,760 $ 146,000 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2023 2022 $ 128,680 $ 179,640 Cash Accounts receivable 153,600 119,160 Merchandise inventory 621,200 573,600 Prepaid expenses 12,120 22,000 Equipment 358,880 254,400 Accumulated depreciation 85,560 106,560 Accounts payable 191,080 246,840 Current notes payable 30,400 22,000 Notes payable 210,000 122,000 Common shares 458,800 358,000 Retained earnings 298,640 293,400 Cash ICE Drilling Inc. Comparative Balance Sheet Information December 31 2023 2022 $ 128,680 $ 179,640 Accounts receivable 153,600 119,160 Merchandise inventory 621,200 573,600 Prepaid expenses 12,120 22,000 Equipment 358,880 254,400 Accumulated depreciation 85,560 106,560 Accounts payable 191,080 246,840 Current notes payable 30,400 22,000 Notes payable 210,000 122,000 Common shares 458,800 358,000 Retained earnings 298,640 293,400 Additional information regarding ICE Drilling's activities during 2023: 1. Loss on sale of equipment is $13,080. 2. Paid $71,880 to reduce a long-term note payable. 3. Equipment costing $113,000, with accumulated depreciation of $71,000, is sold for cash. 4. Equipment costing $217,480 is purchased by paying cash of $57,600 and signing a long-term note payable for the balance. 5. Borrowed $8,400 by signing a short-term note payable. 6. Issued 10,080 common shares for cash at $10 per share. 7. Declared and paid cash dividends of $140,760. Other information: a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. c. Purchases of merchandise are on credit. d. All debits to accounts payable in the period result from payments for merchandise. e. The only decrease in income taxes payable is for payment of taxes. f. The other expenses are paid in advance and are initially debited to Prepaid Expenses.