Requlred Informetlon The following information applies to the questions displayed below The following financial statements and additional information are reported. IKBAN INC Comparative Balance Sheets June 38, 2817 and 2816 2817 2816 Assets Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $182,70e 52,88e 59,888 98,588 7,88e 216, 58e 123,88e 77,888 71,88e 256, 788 132,88e $357,78e $326,58e Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings $33,83e 42,e8e 16,688 5,488 64,88e 6,888 4,288 44,888 236,880 39,788 168,88e Total liabilities and equity $357,78e $326,58e IKIBAN INC Income Statement For Year Ended June 38, 2817 Sales Cost of goods sold Gross profit Operating expenses $718,886 299,88e Depreciation expense $66,680 Other expenses Total operating expenses 141,68e 157,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,88e 168,28e 44,698 $115,516 Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit