The following financial statements and additional information are reported.

IKIBAN INCORPORATED

Comparative Balance Sheets

At June $3020212020$

Assets

Cash $ $106,900$ $ $45,000$

Accounts receivable, net $66,50052,000$

Inventory $64,80088,000$

Prepaid expenses $4,5005,600$

Total current assets $242,700190,600$

Equipment $125,000116,000$

Accumulated depreciation$$Equipment $(27,500)(9,500)$

Total assets $ $340,200$ $ $297,100$

Liabilities and Equity

Accounts payable $ $26,000$ $ $31,500$

Wages payable $6,10015,200$

Income taxes payable $3,5004,000$

Total current liabilities $35,60050,700$

Notes payable $($long term$)31,00061,000$

Total liabilities $66,600111,700$

Equity

Common stock, $$5$ par value $222,000161,000$

Retained earnings $51,60024,400$

Total liabilities and equity $ $340,200$ $ $297,100$

IKIBAN INCORPORATED

Income Statement

For Year Ended June $30,2021$

Sales $ $683,000$

Cost of goods sold $412,000$

Gross profit $271,000$

Operating expenses $($excluding depreciation$)68,000$

Depreciation expense $59,600$

$143,400$

Other gains $($losses$)$

Gain on sale of equipment $2,100$

Income before taxes $145,500$

Income taxes expense $43,990$

Net income $ $101,510$

Additional Information

A $$30,000$ notes payable is retired at its $$30,000$ carrying $($book$)$ value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $$58,600$ cash.

Received cash for the sale of equipment that had cost $$49,600,$ yielding a $$2,100$ gain.

Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

All purchases and sales of inventory are on credit.