Question 4 The comparative balance sheets of Myobaks, Inc. as at December 31 are given below: 2021 2020 Cash 85,680 65.200 Accounts receivable 72.850 56,750 Allowance for doubtful accounts (7,285) (5,675) Merchandise inventory 57,750 37.530 Available for sale securities 106,000 130,000 Equipment 280,600 245,600 Accumulated Depreciation (80,600) (97,600) $14,995 431,805 Accounts payable 47,175 49.775 Income taxes payable 15.240 12,240 Long term notes payable 59,200 79.200 Common stock 253,000 190,000 Retained earnings 140,380 100,590 514,995 431,805 Income Statement for Myobaks, Inc. for the year ended 31/12/2021 is appended: Sales Cost of goods sold Depreciation expense Bad Debt expense Other operating expenses Other gains (losses): Gain on sale of equipment Interest expense Income before taxes. Income taxes expense Net income Additional information: 488,000 $212,540 43,000 1,610 106,260 (363,410) 4,700 (6,400) 122,890 41,100 81,790 1. Dividends declared and paid were $ 42,000. 2. Long-term notes payable was paid off at book value. 3. One piece of Equipment was acquired during the year.