the following financial statements and additional information. FAIRHAVEN INCORPORATED Comparative Balance Sheets ssets Lash Accounts receivable, net Inventory Prepaid expenses June 30, 2019 and 2018 2019 2018 $ 77,000 83,000 $ 25,500 69,000 65,000 96,000 6,200 7,700 235,200 194,200 199,000 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 Sales Cost of goods sold FAIRHAVEN INCORPORATED Income Statement For Year Ended June 30, 2019 (51,000) $ 383,200 $ 33,000 184,000 (17,000) $ 361,200 $ 40,000 18,000 7,000 4,700 5,200 44,700 63,200 43,000 85,000 87,700 148,200 250,000 180,000 45,500 33,000 $ 383,200 $ 361,200 $ 1,059,000 648,000 411,000 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 89,000 105,000 $ 194,000 217,000 7,300 224,300 68,660 $ 155,640 a. A $42,000 note payable is retired at its $42,000 carrying (book) value in exchange f b. The only changes affecting retained earnings are net income and cash dividends pa Question 1- Ch.12 General Ledg-X DUM Online Survey Software Qualtr X cation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=http he following financial statements and additional information. FAIRHAVEN INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Sets sh Counts receivable, net ventory epaid expenses tal current assets uipment cumulated depreciation-Equipment tal assets abilities and Equity counts payable ges payable come taxes payable tal current liabilities otes payable (long term) otal liabilities quity Ommon stock, $5 par value 2019 2018 $ 77,000 $ 25,500 83,000 69,000 65,000 96,000 6,200 235, 200 199,000 (51,000) $ 383,200 $ 33,000 7,700 194,200 184,000 (17,000) $ 361,200 $ 40,000 18,000 5,200 7,000 4,700 44,700 63,200 43,000 85,000 87,700 148,200 250,000 45,500 180,000 33,000 $ 383,200 $ 361,200 etained earnings otal liabilities and equity ales Cost of goods sold FAIRHAVEN INCORPORATED Income Statement For Year Ended June 30, 2019 $ 1,059,000 648,000 411,000 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) $ 89,000 105,000 $ 194,000 217,000