The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017
	2018				2017
Assets
Cash	$	77,300			$	61,000
Accounts receivable, net		90,500				68,000
Inventory		80,800				112,000
Prepaid expenses		6,100				8,800
Total current assets		254,700				249,800
Equipment		141,000				132,000
Accum. depreciationEquipment		(35,500	)			(17,500	)
Total assets	$	360,200			$	364,300
Liabilities and Equity
Accounts payable	$	42,000			$	55,500
Wages payable		7,700				18,400
Income taxes payable		5,100				7,200
Total current liabilities		54,800				81,100
Notes payable (long term)		47,000				77,000
Total liabilities		101,800				158,100
Equity
Common stock, $5 par value		254,000				177,000
Retained earnings		4,400				29,200
Total liabilities and equity	$	360,200			$	364,300

IKIBAN INC. Income Statement For Year Ended June 30, 2018
Sales				$	763,000
Cost of goods sold					428,000
Gross profit					335,000
Operating expenses
Depreciation expense	$	75,600
Other expenses		84,000
Total operating expenses					159,600
					175,400
Other gains (losses)
Gain on sale of equipment					3,700
Income before taxes					179,100
Income taxes expense					45,590
Net income				$	133,510

Additional Information

1. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $74,600 cash.
4. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.