17 4.76 points Exercise 12-19B (Algo) Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. At June 30 Assets Cash eBook Accounts receivable, net Inventory Prepaid expenses Total current assets. Hint IKIBAN INCORPORATED Comparative Balance Sheets 2021 $ 79,700 84,500 2020 76,800 $ 57,000 64,000 106,000 Print References Equipment Accumulated 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 $ 350,200 $ 38,000 7,300 4,700 50,000 5,700 8,000 235,000 246,700 137,000 (33,500) 128,000 (15,500) $ 347,500 $ 49,500 17,600 6,400 73,500 32,600 73,000 82,600 146,500 Retained earnings 246,000 21,600 173,000 28,000 Total liabilities and equity $ 350,200 $ 347,500 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 Additional Information $ 743,000 424,000 319,000 80,000 71,600 167,400 3,300 170,700 45,190 $ 125,510 a. A $40,400 note payable is retired at its $40,400 carrying (book) value in exchange for cach 17 4.76 points eBook Hint Additional Information a. A $40,400 note payable is retired at its $40,400 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 $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 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. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Print Cash flows from operating activities References S Cash flows from investing activities Cash flows from financing activities 0 0 Net increase (decrease) in cash $ 0 Cash balance at prior year-end Cash balance at current year-end $ 0