[The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses 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 2021 2020 $ 98,500 $ 59,000 87,500 78,800 66,000 109,000 5,900 8,400 270,700 242,400 139,000 (34,500) 130,000 (16,500) $ 375,200 $ 40,000 7,500 4,900 $ 355,900 $ 52,500 18,000 6,800 52,400 77,300 45,000 75,000 97,400 152,300 250,000 175,000 27,800 28,600 $ 375,200 $ 355,900 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 753,000 426,000 327,000 82,000 73,600 171,400 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,500 174,900 45,390 $ 129,510