Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash Accounts receivable, net Prepaid expenses $ 93,100 $ 68,000 101,000 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity 87,800 75,000 122,500 6,800 10,200 288,700 275,700 148,000 (39,000) $ 397,700 Accounts payable $ 49,000 Wages payable 8,400 139,000 (21,000) $ 393,700 $ 66,000 19,800 Income taxes payable 5,800 8,600 Total current liabilities 63,200 94,400 Notes payable (long term) 54,000 84,000 Total liabilities 117,200 178,400 Equity Common stock, $5 par value 268,000 184,000 Retained earnings 12,500 31,300 Total liabilities and equity 397,700 $ 393,700