Saved The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 87,500 65, eee 63,800 4,4ee 220,700 124,000 (27,000) $317,700 $ 44,000 51, eee 86,500 5,4ee 186,900 115,000 (9 , ) $292,9ee Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 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 Total liabilities and equity $ 25,000 6,000 3,488 34,400 30, eee 64,400 $ 3e, eee 15, eee 3,800 48,888 60, eee 188,888 220,eee 33, see $317,700 160, eee 24,100 $292,900 Prey 4 5 of 5 Next > ch O TT DIL $678,000 411, eee 267.000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,600 Other expenses 67,eee Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 125,600 141,400 2,000 143,480 43,890 $ 99,510 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 pald. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, ylelding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.