The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014
	2015				2014
Assets
Cash	$	103,600			$	57,000
Accounts receivable, net		69,300				51,300
Inventory		66,300				96,600
Prepaid expenses		5,100				6,200
Total current assets		244,300				211,100
Equipment		131,600				116,000
Accum. depreciationEquipment		(28,200	)			(10,100	)
Total assets	$	347,700			$	317,000
Liabilities and Equity
Accounts payable	$	26,700			$	32,900
Wages payable		7,700				16,400
Income taxes payable		2,400				4,200
Total current liabilities		36,800				53,500
Notes payable (long term)		46,000				76,000
Total liabilities		82,800				129,500
Equity
Common stock, $5 par value		240,000				180,000
Retained earnings		24,900				7,500
Total liabilities and equity	$	347,700			$	317,000

IKIBAN INC. Income Statement For Year Ended June 30, 2015
Sales				$	669,000
Cost of goods sold					408,000
Gross profit					261,000
Operating expenses
Depreciation expense	$	52,500
Other expenses		66,100
Total operating expenses					118,600
					142,400
Other gains (losses)
Gain on sale of equipment					2,600
Income before taxes					145,000
Income taxes expense					58,000
Net income				$	87,000

Additional Information

a.	A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
b.	The only changes affecting retained earnings are net income and cash dividends paid.
c.	New equipment is acquired for $64,500 cash.
d.	Received cash for the sale of equipment that had cost $48,900, yielding a $2,600 gain.
e.	Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f.	All purchases and sales of inventory are on credit.

rev: 02_22_2016_QC_CS-42396