Novak Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023: NOVAK Inc. Comparative Statement of Financial Position December 31 2023 2022 Cash $71,380 $53,900 Accounts receivable 57,400 50,800 Inventory 41,800 74,000 Prepaid rent 5,500 4,100 Equipment 154,000 126,000 Accumulated depreciation-equipment (33,000) (22,100) Total assets $297,080 $286,700 Accounts payable $50,000 $38,500 Income tax payable 4,200 6,400 Long-term loans payable 60,000 69,500 Common shares 126,000 127,200 Retained earnings 56,880 45,100 Total liabilities and shareholders' equity $297,080 $286,700 NOVAK Inc. Income Statement Year Ended December 31, 2023 Sales revenue $370,000 Cost of goods sold 197,000 Gross margin 173,000 Operating expenses 117,400 Operating income 55,600 Interest expense $11,200 Gain on disposal of equipment (2,100) 9,100 Income before income tax 46,500 Income tax expense 22,320 Net income $24,180 Additional information: 1. Dividends on common shares in the amount of $12,400 were declared and paid during 2023. 2. Depreciation expense of $24,900 is included in operating expenses. 3. Equipment with a cost of $20,000 that was 70% depreciated was sold during 2023.