FIELDS INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 91,000 $ 32,200 Accounts receivable, net 76,000 65, 000 5,900 59,000 90,000 7,400 188,600 Inventory Prepaid expenses Total current assets 237,900 189,000 (48,000) Equipment Accum. depreciation-Equipment 175,000 (16,000) $347, 600 Total assets $378,900 Liabilities and Equity Accounts payable $ 34,000 20,000 4,600 $28,000 8,000 4,100 Wages payable Income taxes payable Total current liabilities 58, 600 70,000 128, 600 40,100 Notes payable (long term) 35, 000 75,100 Total liabilities Equity Common stock, $5 par value Retained earnings 180,000 39,000 250,000 53,800 $347, 600 $378,900 Total liabilities and equity FIELDS INC. Income Statement For Year Ended June 30, 2017 Sales $998,000 611,000 387,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $83,000 99,000 182,000 205,000 Other gains (losses) Gain on sale of equipment Income before taxes 6,100 211,100 64, 620 Income taxes expense Net income $146, 480 Additional Information a. A $35,000 note payable is retired at its $35,000 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 $81,000 cash. d. Received cash for the sale of equipment that had cost $67,000, yielding a $6,100 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit