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Please help me solve this problem. Chapter 12 Question 3 Part 1

IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total 1iabilities Equity \begin{tabular}{rr} $87,500 & $44,000 \\ 65,000 & 51,000 \\ 63,800 & 86,500 \\ 4,400 & 5,400 \\ \hline 220,700 & 186,900 \\ 124,000 & 115,000 \\ (27,000) & (9,000) \\ \hline$317,700 & $292,900 \\ \hline \hline \end{tabular} Common stock, \$5 par value Retained earnings Total liabilities and equity \begin{tabular}{rr} $25,000 & $30,000 \\ 6,000 & 15,000 \\ 3,400 & 3,800 \\ \hline 34,400 & 48,800 \\ 30,000 & 60,000 \\ \hline 64,400 & 108,800 \end{tabular} \begin{tabular}{rr} 220,000 & 160,000 \\ 33,300 & 24,100 \\ \hline$317,700 & $292,900 \\ \hline \end{tabular} IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $678,060411,060267,06067,96058,600141,460 2,000143,46043,890$99,510 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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

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