please also explain how this is done

Practice Problem 01 a-b (Part Level Submission) The following are the financial statements of Cullumber Company Cullumber Company Comparative Balance Sheets December 31 Assets 2020 Cash $ 36,000 Accounts receivable 32,000 Inventory 29,000 Equipment 59,000 Accumulated depreciation-equipment (29,000) Total $127,000 2019 $ 19,000 18,000 20,000 77,000 (23,000) $111,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 28,000 7,000 26,000 17,000 49,000 $127,000 $ 16,000 8,000 32,000 13,000 42,000 $111,000 Total Cullumber Company Income Statement For the Year Ended December 31, 2020 Sales revenue $241,000 Cullumber Company Income Statement For the Year Ended December 31, 2020 Sales revenue $241,000 Cost of goods sold 175,000 Gross profit 66,000 Operating expenses 23,000 Income from operations 43,000 Interest expense 2,000 Income before income taxes 41,000 Income tax expense 7,000 Net income $ 34,000 Additional data: 1. Dividends declared and paid were $27,000. 2. During the year, equipment was sold for $9,600 cash. This equipment cost $18,000 originally and had a book value of $9,600 at the time of sale. 3. All depreciation expense, $14,400, is in the operating expenses. 4. All sales and purchases are on account. Practice Problem 01 a-b (Part Level Submission) The following are the financial statements of Cullumber Company Cullumber Company Comparative Balance Sheets December 31 Assets 2020 Cash $ 36,000 Accounts receivable 32,000 Inventory 29,000 Equipment 59,000 Accumulated depreciation-equipment (29,000) Total $127,000 2019 $ 19,000 18,000 20,000 77,000 (23,000) $111,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 28,000 7,000 26,000 17,000 49,000 $127,000 $ 16,000 8,000 32,000 13,000 42,000 $111,000 Total Cullumber Company Income Statement For the Year Ended December 31, 2020 Sales revenue $241,000 Cullumber Company Income Statement For the Year Ended December 31, 2020 Sales revenue $241,000 Cost of goods sold 175,000 Gross profit 66,000 Operating expenses 23,000 Income from operations 43,000 Interest expense 2,000 Income before income taxes 41,000 Income tax expense 7,000 Net income $ 34,000 Additional data: 1. Dividends declared and paid were $27,000. 2. During the year, equipment was sold for $9,600 cash. This equipment cost $18,000 originally and had a book value of $9,600 at the time of sale. 3. All depreciation expense, $14,400, is in the operating expenses. 4. All sales and purchases are on account