2012 IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012 2013 Assets Cash $ 106,700 Accounts receivable, net 69,500 Inventory 65,900 Prepaid expenses 6,100 Equipment 123,300 Accum. depreciation- (28.100) Equipment $ 65,500 51,900 96,500 4,700 112,000 (10,900) Total assets $343.400 $319,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable Notes payable (long term) Common stock. $5 par value Retained earnings $ 26,300 7100 2,900 49,000 233,000 25.100 $ 32,200 16.500 4,000 72.000 187,000 8.000 Total liabilities and equity IKIBAN INC Income Statement For Year Ended June 30, 2013 Sales 678,000 $ Cost of goods sold 404,000 274,000 Gross profit Operating expenses Depreciation expense 57,600 Other expenses 66.600 Total operating expenses 124,200 149.800 Other gains (losses) Gain on sale of equipment 2.200 Income before taxes 152,000 Income taxes expense 60.800 Net income S 91200 Income taxes expense 60,800 Net income $ 91,200 a. Additional Information A $23,000 note payable is retired at its $23,000 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 $60,800 cash. Received cash for the sale of equipment that had cost $49,500, yielding a $2,200 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of merchandise inventory are on credit. d. e. IKIBAN, INC Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2013 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities $ Cash flows from investing activities Cash flows from financing activities $ Net increase (decrease) in cash Cash balance at prior year end Cash balance at current year-end $