1 The following financial statements and additional Information are reported. 10 points IKIBAN INC. Comparative Balance Sheets June 30, 2020 and 2019 2020 2019 eBook $ 87,500 65,000 63,800 4,400 220,700 124,888 (27,880) $317,700 $ 44,888 51,080 86,500 5,480 186,900 115,888 (9,880) $292,980 Hint Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Print $ 25,000 6,080 3,480 34,400 30,000 64,480 $ 30,000 15,800 3,800 48,888 60,000 108,888 References 220,000 33,380 $317,700 160,880 24,100 $292,988 IKIBAN INC. Income Statement For Year Ended June 30, 2020 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 $ 678,000 411,000 267,888 67,888 58,600 141,400 2,080 143,480 43,899 $ 99,510 Additional Information a. A $30,000 note 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 pald. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, ylelding 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 1 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.) 10 points IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2020 Cash flows from operating activities Net income eBook Hint $ 0 Print Cash flows from investing activities o References 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0