The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 AssetS Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $87,500 44,000 51,000 86,500 5,400 186,900 115,000 65,000 63,800 4,400 220,700 124,000 27,000) 9,000) $317,700 292,900 Liabilities and Equity Accounts Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings payable $ 25,000 6,000 3,400 34,400 30,000 64,400 30,000 15,000 3,800 48,800 60,000 108,800 220,000 33,300 160,00 24,100 $317,700 292,900 Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $678,000 411,000 267,000 Depreciation expense Other expenses $58,600 67,000 Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43,890 $ 99,510