STREAM LAUNCH INCORPORATEDComparative Balance SheetsJune $30,2021$ and $202020212020$Assets$$Cash$ $99,900$$ $58,700$Accounts receivable, net$73,00057,000$Inventory$66,00092,000$Prepaid expenses$4,6005,700$Total current assets$243,500213,400$Equipment$134,000124,000$Accumulated depreciation$$Equipment$(33,000)(11,000)$Total assets$ $344,500$$ $326,400$Liabilities and Equity$$Accounts payable$ $30,000$$ $36,000$Wages payable$7,00018,000$Income taxes payable$4,0004,400$Total current liabilities$41,00058,400$Notes payable $($long term$)38,00075,000$Total liabilities$79,000133,400$Equity$$Common stock, $$5$ par value$220,000160,000$Retained earnings$45,50033,000$Total liabilities and equity$ $344,500$$ $326,400$

STREAM LAUNCH INCORPORATEDIncome StatementFor Year Ended June $30,2021$Sales$$$ $713,000$Cost of goods sold$436,000$Gross profit$277,000$Operating expenses$$Depreciation expense$ $62,000$Other expenses$70,000$Total operating expenses$$$ $132,000145,000$Other gains $($losses$)$Gain on sale of equipment$2,300$Income before taxes$147,300$Income taxes expense$45,090$Net income$$$ $102,210$

Additional Information

A $$37,000$ note payable is retired at its $$37,000$ carrying $($book$)$ value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $$61,000$ cash.

Received cash for the sale of equipment that had cost $$51,000,$ yielding a $$2,300$ gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.