Swing It, Inc., was started several years ago by two tennis instructors. The company's comparative balance sheets and income statement follow, along with additional information Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment $6,360 $4,120 1,810 5,300 930 5,830 (1,560) (1,280) $11,560 $9,950 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 470 1,700 5,300 $ 470 1,000 750 500 5,300 3,620 2,400 $11,560 $9,950 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $38,100 35,600 280 1,000 Net Income $1,220