LAG Network Inc.$$s balance sheet and income statement are as follows:

LAG Network Inc.

Income Statement

For Year Ended December $31,2020$

Sales $ $919,600$

Cost of goods sold $547,200$

Gross profit $ $372,400$

Operating expenses:

Depreciation expense $ $25,200$

Other expenses $223,800$

Total operating expenses $249,000$

Profit from operations $ $123,400$

Income taxes $13,600$

Profit $ $109,800$

LAG Network Inc.

Comparative Balance Sheet Information

December $31$

Assets $20202019$

Cash $ $81,100$ $ $52,600$

Accounts receivable $39,40036,600$

Merchandise inventory $279,300234,400$

Equipment $145,400136,600$

Accumulated depreciation $(62,800)(37,600)$

Total assets $ $482,400$ $ $422,600$

Liabilities and Equity

Accounts payable $ $22,200$ $ $34,800$

Income taxes payable $2,6001,200$

Common shares $354,000351,000$

Retained earnings $103,60035,600$

Total liabilities and equity $ $482,400$ $ $422,600$

Additional information regarding LAG Network Inc.$$s activities during $2020$:

Equipment is purchased for $$8,800$ cash.

$1,200$ common shares are issued for cash at $$2\mathrm{.}50$ per share.

Declared and paid $$41,800$ of cash dividends during the year.

Other information regarding LAG Network Inc.:

All sales are credit sales.

All credits to accounts receivable are receipts from customers.

All purchases of merchandise are on credit.

All debits to accounts payable result from payments for merchandise.

Other operating expenses are cash expenses.

The only decrease in income taxes payable is for payment of taxes.