Additional Information

a$.$ A $$30,000$ notes payable is retired at its $$30,000$ 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 $$70,600$ cash.

d$.$ Received cash for the sale of equipment that had cost $$61,600,$ yielding a $$3,300$ gain.

e$.$ Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

f$.$ All purchases and sales of inventory are on credit.The following financial statements and additional information are reported.

$\backslash$table$[[\backslash$table$[[$IKIBAN INCORPORATED$],[$Comparative Balance Sheets$]]],[$At June $30,2021,2020],[$Assets$],[$Cash$,$$$99,700,$$$57,000],[$Accounts receivable, net,$84,500,64,000],[$Inventory$,76,800,106,000],[$Prepaid expenses,$5,700,8,000],[$Total current assets,$266,700,235,000],[$Equipment$,137,000,128,000],[$Accumulated depreciation$-$Equipment,$(33,500),(15,500)],[$Total assets,$$370,200,$$$347,500],[$Liabilities and Equity$],[$Accounts payable,$$38,000,$$$49,500],[$Wages payable,$7,300,17,600],[$Income taxes payable,$4,700,6,400],[$Total current liabilities,$50,000,73,500],[$Notes payable $($long term$),43,000,73,000],[$Total liabilities,$93,000,146,500],[$Equity$],[$Common stock, $$5$ par value,$246,000,173,000],[$Retained earnings,$31,200,28,000],[$Total liabilities and equity,$$370,200,$$$347,500]]$

$\backslash$table$[[\backslash$table$[[$IKIBAN INCORPORATED$],[$Income Statement$],[$For Year Ended June $30,2021]],],[$Sales$,$$$743,000],[$Cost of goods sold,$424,000],[$Gross profit,$319,000],[$Operating expenses $($excluding depreciation$),80,000],[$Depreciation expense,$71,600],[,167,400],[$Other gains $($losses$),],[$Gain on sale of equipment,$3,300],[$Income before taxes,$170,700],[$Income taxes expense,$45,190],[$Net income,$$125,510]]$