Instant Brake Inc.$$s comparative balance sheet information at December $31,2023$ and $2022,$ and its income statement for the year ended December $31,2023,$ are as follows:

Instant Brake Inc.

Income Statement

December $31,2023$

Sales $ $875,000$

Cost of goods sold $577,000$

Gross profit $ $298,000$

Operating expenses $ $132,730$

Depreciation expense $41,290174,020$

Operating Profit $123,980$

Loss on sale of equipment $4,350$

Investment income $12,020$

Profit before taxes $131,650$

Income taxes $19,000$

Profit $ $112,650$

Instant Brake Inc.

Balance Sheet Information

December $31$

$20232022$ Net Change

Cash $ $49,000$ $ $25,160$ $ $23,840$

Cash equivalents $17,7809,8007,980$

Accounts receivable $88,52038,44050,080$

Inventory $114,44084,52029,920$

Investment $017,780(17,780)$

Land $77,00077,0000$

Building and equipment $447,090459,110(12,020)$

Accumulated depreciation $122,050100,96021,090$

Accounts payable $18,06038,000(19,940)$

Dividends payable $1,400700700$

Bonds payable $25,000025,000$

Preferred shares $81,80081,8000$

Common shares $406,280406,2800$

Retained earnings $139,24084,07055,170$

During $2023,$ the following transactions occurred:

Purchased equipment for $$19,300$ cash.

Sold the investment on January $1,2023,$ for $$29,800,$ resulting in investment income of $$12,020.$

Sold equipment for $$6,770$ cash that had originally cost $$31,320$ and ha