Use the following financial statements and additional information. EDMUNDS INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 2019 2018 $ 146,400 68,000 $ 95,900 69,000 53,000 96,000 4,700 5,900 288,100 250,800 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 140,000 (36,000) $ 392,100 $ 33,000 8,000 130,000 (12,000) $ 368,800 $ 40,000 20,000 4,300 4,800 45,300 64,800 43,000 85,000 88,300 149,800 Common stock, $5 par value 250,000 180,000 Retained earnings Total liabilities and equity 53,800 $ 392,100 39,000 $ 368,800 EDMUNDS INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 64,000 $ 742,000 454,000 288,000 72,000 $ 136,000 152,000 2,500 154,500 47,290 $ 107,210