Problem #2 Use the following data for Hines Music Company to prepare a statement of dows using the indirect method for the year ended June 30, 20x2 Hines Music Company Income Statement For the Year Ended June 30, 20x2 Net sales Less expenses $700, 000 Cost of goods sold Depreciation expense Administrative expenses 104, 000 Selling expenses Loss on sale of investment 1,000 615,000 $400, 000 40, 000 70, 000 Income before income taxes Income taxes Net income 85, 000 20, 000 Hines Music Company Comparative Balance Sheets June 30, 20x2 and 20x1 Loss lodo inv AssetS 20x2 20x1 $ 9,000 30, 000,a Cash Accounts receivable (net) Inventory Prepaid expenses Long-term investments Plant and equipment Accumulated depreciation Total assets 70,000 55,000S 80,000 100,0000 au 6,000 5, 000 40,000 50,000 Fiopa 160,000 80,000o (40,000) (24,000) 296.000 Liabilities 4,000 12,000B Accounts payable Wages payable Income taxes payable Notes payable Total liabilities 440 1,560 5203 2, 480 s 46,00038,000 $116,000 $130,000 Stockholders' Equity Common stock Retained earnings Total stockholders' equity 163,000 128,000 258,0 Total liabilities and stockholders equity $325 000$225.000 Additional information 0,000 was sold for its book value of $16,000 long-term investment was sold for $9,000. The outstanding notes are l A plant asset costing $4