The draft financial statements for Kayak Inc. (KI) are as follows:

Kayak Inc. Draft balance sheet As at May 31, 2020 Cash $ 20,375 Accounts receivable 148,000 Prepaid expenses 8,125 Inventory 50,000 235,500 Property, plant, and equipment, net 89,500 Other intangible assets 80,000 Total assets $ 405,000 Operating loan 15 1 00,000 Accounts payable and accrued liabilities 98,500 Current portion of long-term debt 35,000 233,500 Long-ten'n debt 00,000 Total liabilities 323,500 Common shares 100 Retained earnings 81 ,400 Total equity 81,500 Total liabilities and equity $ 405,000 Kayak Inc. Draft income statement For the year ended May 31, 2020 Revenue $1,453,280 Cost of goods sold 915,005 Gross profit 538,275 Sales and marketing 315,200 General administrative 128,350 Amortization 17,500 Income before tax 77,225 Income tax expense 12,356 Net income $ 64,869