[The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At

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[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 Prepaid expenses Inventory 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 2021 2020 $ 99,700 $ 57,000 84,500 76,800 64,000 106,000 5,700 8,000 266,700 235,000 137,000 (33,500) $ 370,200 128,000 (15,500) $ 347,500 $ 38,000 7,300 $ 49,500 17,600 4,700 6,400 50,000 73,500 43,000 73,000 93,000 146,500 246,000 31,200 173,000 28,000 $ 370,200 $ 347,500 Retained earnings Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense 55 Other gains (losses) Gain on sale of equipment: Income before taxes Income taxes expense Net income $ 743,000 424,000 319,000 80,000 71,600 167,400 3,300 170,700 45,190 $ 125,510