(The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 94, 300 $ 66,000 Accounts receivable, net 98,000 73,000 Inventory 85,800 119,500 Prepaid expenses 6,600 9,800 Total current assets 284, 700 268,300 Equipment 146,000 137,000 Accum. depreciation- Equipment (38,000) (20,000) Total assets $392,700 $385, 300 Liabilities and Equity Accounts payable $ 47,000 $ 63,000 Wages payable 8, 200 19,400 Income taxes payable 5,600 8, 200 Total current liabilities 60, 800 90,600 Notes payable (long term) 52,000 82,000 Total liabilities 112,800 172,600 Equity Common stock, $5 par value 264,000 182,000 Retained earnings 15,900 30, 700 Total liabilities and equity $392,700 $385, 300 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $788,000 Cost of goods sold 433,000 Gross profit 355,000 Operating expenses Depreciation $80,600 expense Other expenses 89,000 Total operating 169,600 expenses 185,400 Other gains (losses) Gain on sale of equipment 4,200 Income before taxes 189,600 Income taxes 46,090 expense Net income $143,510 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 $79,600 cash. d. Received cash for the sale of equipment that had cost $70,600. yielding a $4,200 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