17 Exercise 16-19B (Algo) Direct: Preparing statement of cash flows LO P5 4.76 points 1 eBook 5,300 81 Hint The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 82,100 $ 53,000 Accounts receivable, net 78,500 60,000 Inventory 72,800 100,000 Prepaid expenses 7,200 Total current assets 230,700 220,200 Equipment 133.000 124.000 Accumulated depreciation Equipment (31,500) (13,500) Total assets $ 340,200 $ 330,700 Liabilities and Equity Accounts payable $ 34,000 $ 43,500 Wages payable 6,900 16,800 Income taxes payable 4,300 5,600 Total current liabilities 5,200 Notes payable (long term) 31,800 69,000 Total liabilities 77,000 134,900 Equity Common stock, $5 par value 238,000 169,000 Retained earnings 25,200 26,800 $ 30,200 Total liabilities and equity $ 330,700 Print References 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 $ 723,000 420,000 3U3, UUU 76,000 67,600 159,400 2,900 162300 44,790 $ 117,510 Additional Information a. A $37,200 note payable is retired at its $37,200 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600. yielding a $2,900 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 indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Cash received from customers $ 303,000 Cash paid for inventory (18,500) Cash paid for operating expenses 27,200 Cash paid for income taxes $ 311,700 Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment (66.600) 10,900 (55,700) Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 69,000 (30,000) (126,310) $ Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end (87,310) 168,690 53,000 221,690 $