The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses 2021 2020 $ 87,500 $ 44,000 65,000 51,000 Inventory Total current assets Equipment Accumulated 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 63,800 86,500 4,400 5,400 220,700 186,900 124,000 115,000 (27,000) $ 317,700 $ 25,000 6,000 (9,000) $ 292,900 $ 30,000 15,000 3,400 3,800 34,400 48,800 30,000 60,000 64,400 108,800 220,000 160,000 Retained earnings 33,300 24,100 Total liabilities and equity $ 317,700 $ 292,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense $ 678,000 411,000 267,000 67,000 58,600 141,400 2,000 143,400 43,890