Use the following financial statements and additional information.

Additional Information

a$.$ A $$40,000$ note payable is retired at its $$40,000$ carrying $($book$)$ value in exchange for cash.

b$.$ The only changes affecting retained earnings are net Income and cash dividends pald.

c$.$ New equipment is acquired for $$97,000$ cash.

d$.$ Recelved cash for the sale of equipment that had cost $$81,000,$ ylelding a $$9,800$ gain.

e$.$ Prepald Expenses and Wages Payable relate to Other Expenses on the Income statement.

f$.$ All purchases and sales of Inventory are on credit.