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

LAG Network Inc.
Income Statement
For Year Ended December 31, 2020
Sales				$	928,600
Cost of goods sold					556,200
Gross profit				$	372,400
Operating expenses:
Depreciation expense	$	25,200
Other expenses		232,800
Total operating expenses					258,000
Profit from operations				$	114,400
Income taxes					18,600
Profit				$	95,800

LAG Network Inc.
Comparative Balance Sheet Information
	December 31
Assets	2020				2019
Cash	$	81,190			$	54,400
Accounts receivable		42,400				37,600
Merchandise inventory		284,710				247,800
Equipment		154,400				138,400
Accumulated depreciation		(71,800	)			(46,600	)
Total assets	$	490,900			$	431,600
Liabilities and Equity
Accounts payable	$	31,200			$	43,800
Income taxes payable		11,600				10,200
Common shares		363,000				337,500
Retained earnings		85,100				40,100
Total liabilities and equity	$	490,900			$	431,600

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

1. Equipment is purchased for $16,000 cash.
2. 10,200 common shares are issued for cash at $2.50 per share.
3. Declared and paid $50,800 of cash dividends during the year.

Other information regarding LAG Network Inc.:

1. All sales are credit sales.
2. All credits to accounts receivable are receipts from customers.
3. All purchases of merchandise are on credit.
4. All debits to accounts payable result from payments for merchandise.
5. Other operating expenses are cash expenses.
6. The only decrease in income taxes payable is for payment of taxes.