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 Assets Inventory At June 30 Cash Accounts receivable, net Prepaid expenses Total current assets 2021 2020 $ 104,500 72,500 $ 49,000 56,000 68,800 94,000 4,900 6,400 250,700 205,400 Equipment Accumulated depreciation-Equipment Total assets 129,000 120,000 (29,500) (11,500) $ 350,200 $ 313,900 Liabilities and Equity Accounts payable $ 30,000 $ 37,500 Wages payable 6,500 16,000 Income taxes payable 3,900 4,800 Total current liabilities 40,400 58,300 Notes payable (long term) 35,000 65,000 Total liabilities 75,400 123,300 Equity Common stock, $5 par value 230,000 Retained earnings 165,000 44,800 25,600 Total liabilities and equity $ 350,200 $ 313,900 IKIBAN INCORPORATED