Use the following financial statements and additional information.

GREEN INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018
	2019	2018
Assets
Cash	$ 65,400	$ 23,600
Accounts receivable, net	68,000	53,000
Inventory	71,000	98,000
Prepaid expenses	6,200	7,800
Total current assets	210,600	182,400
Equipment	202,000	187,000
Accumulated depreciationEquipment	(51,000)	(17,000)
Total assets	$ 361,600	$ 352,400
Liabilities and Equity
Accounts payable	$ 34,000	$ 42,000
Wages payable	8,000	19,000
Income taxes payable	4,900	5,400
Total current liabilities	46,900	66,400
Notes payable (long term)	45,000	90,000
Total liabilities	91,900	156,400
Equity
Common stock, $5 par value	220,000	160,000
Retained earnings	49,700	36,000
Total liabilities and equity	$ 361,600	$ 352,400

GREEN INCORPORATED Income Statement For Year Ended June 30, 2019
Sales		$ 1,080,000
Cost of goods sold		661,000
Gross profit		419,000
Operating expenses
Depreciation expense	$ 91,000
Other expenses	107,000
Total operating expenses		$ 198,000
		221,000
Other gains (losses)
Gain on sale of equipment		7,700
Income before taxes		228,700
Income taxes expense		70,010
Net income		$ 158,690

Additional Information

1. A $45,000 note payable is retired at its $45,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $89,000 cash.
4. Received cash for the sale of equipment that had cost $74,000, yielding a $7,700 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.