The following financial statements and additional information are reported.

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30	2021	2020
Assets
Cash	$ 85,700	$ 47,000
Accounts receivable, net	69,500	54,000
Inventory	66,800	91,000
Prepaid expenses	4,700	6,000
Total current assets	226,700	198,000
Equipment	127,000	118,000
Accumulated depreciationEquipment	(28,500)	(10,500)
Total assets	$ 325,200	$ 305,500
Liabilities and Equity
Accounts payable	$ 28,000	$ 34,500
Wages payable	6,300	15,600
Income taxes payable	3,700	4,400
Total current liabilities	38,000	54,500
Notes payable (long term)	30,600	63,000
Total liabilities	68,600	117,500
Equity
Common stock, $5 par value	226,000	163,000
Retained earnings	30,600	25,000
Total liabilities and equity	$ 325,200	$ 305,500

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales	$ 693,000
Cost of goods sold	414,000
Gross profit	279,000
Operating expenses (excluding depreciation)	70,000
Depreciation expense	61,600
	147,400
Other gains (losses)
Gain on sale of equipment	2,300
Income before taxes	149,700
Income taxes expense	44,190
Net income	$ 105,510

Additional Information

A $32,400 note payable is retired at its $32,400 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 $60,600 cash.

Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain.

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

All purchases and sales of inventory are on credit.