IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets 2021 $ 86,300 68,000 2020 $ 46,000 53,000 65,800 89,500 4,600 5,800 224,700 194,300 $ 322,700 Liabilities and Equity Accounts payable Wages payable $ 27,000 6,200 126,000 (28,000) 117,000 (10,000) $ 301,300 $ 33,000 15,400 Income taxes payable 3,600 4,200 Total current liabilities. 36,800 52,600 Notes payable (long term) 30,400 62,000 Total liabilities 67,200 114,600 Equity Common stock, $5 par value 224,000 162,000 Retained earnings 31,500 24,700 Total liabilities and equity $ 322,700 $ 301,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 688,000 413,000 275,000 69,000 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 60,600 145,400 2,200 147,600 44,090 $ 103,510 a. A $31,600 note payable is retired at its $31,600 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 $59,600 cash. J Deenlund each for the ela of dement that had een enn vindinnen