The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales Cost of merchandise sold Gross profit Operating expenses: $449,240 255,080 $194,160 Depreciation expense $34,470 Other operating expenses 91,140 Total operating expenses 125,610 Income before income tax $68,550 19,020 $49,530 Income tax expense Net income Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Accounts receivable (net) Inventories Increase/ Decrease* $9,960* 3,470 Prepaid expenses 3,320* Accounts payable (merchandise creditors) 7,080* Accrued expenses payable (operating expenses) 990 Income tax payable 2,380*