LAG Network Inc.'s balance sheet and income statement are as follows:
LAG Network Inc.
Income Statement
For Year Ended December 31, 2023
Sales
Cost of goods sold
Gross profit
Operating expenses:
Depreciation expense
Other expenses
Total operating expenses
Profit from operations
Income taxes
Profit
Assets
$ 25,200
215,800
LAG Network Inc.
Comparative Balance Sheet Information
$ 920,600
548,200
$372,400
241,000
$ 131,400
14,600
$ 116,800
December 31
2023
2022
Cash
Accounts receivable
$ 81,110 $ 52,800
Merchandise inventory
Equipment
Accumulated depreciation
Total assets
Liabilities and Equity
40,400
287,790
36,800
235,800
$ 491,900
Accounts payable
Income taxes payable
Common shares
Retained earnings
$ 23,200
3,600
355,000
110,100
146,400
(63,800)
136,800
(38,600)
$ 423,600
$ 35,800
2,200
349,500
36,100
Total liabilities and equity
$ 491,900
$ 423,600
Additional information regarding LAG Network Inc.'s activities during 2023:
a. Equipment is purchased for $9,600 cash.
b. 2,200 common…