Use the following financial statements and additional information MARSHALL INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 70,500 $ 33, eee Accounts receivable, net 70, eee 55,eee Inventory 71, eee 98,00 Prepaid expenses 5,800 7,200 Total current assets 217,300 193,200 Equipment 183,00 169, eee Accum. depreciation-Equipment (45,000) (15,000) Total assets $355,300 $347,200 Liabilities and Equity Accounts payable $ 34,00 $ 42,000 Wages payable 7,000 18,eee Income taxes payable 3,8004 ,200 Total current liabilities 44,8ee64,200 Notes payable (long term) 45,000 90,000 Total liabilities 89.800 154,20e Equity Common stock, $5 par value 220,000 160, eee Retained earnings 45,500 33,000 Total liabilities and equity $355,300 $347,200 MARSHALL INC. Income Statement For Year Ended June 30, 2019 Sales $959,000 Cost of goods sold 587.000 Gross profit 372.000 Operating expenses Depreciation expense $79,000 Other expenses 95.000 Total operating expenses 174,000 198,000 Other gains (losses) Gain on sale of equipment 5,500 Income before taxes 203,500 Income taxes expense 62,290 Net income $141,210 Additional Information .. A $45,000 note payable is retired at its $45,000 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 $77,000 cash. d. Received cash for the sale of equipment that had cost $63,000 yielding a $5.500 gain. .. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 1. All purchases and sales of inventory are on credit Jun 30 Cash Accounts receivable, net Sales Jun 30 Cost of goods sold Accounts payable Inventory Cash Jun 30 Depreciation expense Accumulated depreciation - Equipment Jun 30 Other expenses Wages payable Prepaid expenses Cash Jun 30 Cash Accumulated depreciation - Equipment Equipment Gain on sale of equipment Jun 30 Income taxes expense Income taxes payable Cash 7 Jun 30 Notes payable long-term) Cash Jun 30 Equipment Cash Jun 30 Cash Common stock, 55 par value Gain on sale of equipment income summary Income summary Cost of goods sold Depreciation expense Other expenses Retained earnings A3 Jun 30 Retained earnings Cash