The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 74,900 96,500 $ 65,000 84,800 72,000 118,000 6,500 9,600 262,700 264,600 145,000 At June 30 Assets Cash Accounts receivable, net Prepaid expenses 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 Retained earnings Total liabilities and equity IKIBAN INCORPORATED $ 370,200 $ 46,000 (37,500) 136,000 (19,500) $ 381,100 $ 61,500 8,100 19,200 5,500 8,000 59,600 88,700 34,200 81,000 93,800 169,700 262,000 181,000 14,400 30,400 $ 370,200 $ 381,100 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 Net income $ 783,000 432,000 351,000 88,000 79,600 183,400 4,100 187,500 45,990 $ 141,510 Prev 17 of 21