2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 94,900 Accounts receivable, net 96,500 Inventory 84,800 Prepaid expenses 6,500 Total current assets 282,700 Equipment 145,000 Accum. depreciation-Equipment (37,500) Total assets $390, 200 Liabilities and Equity Accounts payable $ 46,000 Wages payable 8, 100 Income taxes payable 5,500 Total current liabilities 59, 600 Notes payable (long term) 51, 000 Total liabilities 110, 600 Equity Common stock, 95 par value 262,000 Retained earnings 17,600 Total liabilities and equity $390, 200 $ 65,000 72,000 118,000 9,600 264,600 136,000 (19,500) $381, 100 $ 61,500 19, 200 8,000 88,700 81,000 169, 700 181, 008 30, 400 $381, 100 IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $79,600 Other expenses 88,000 Total operating expenses $783, 000 432, 900 351, 900 167,600 183, 400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,100 187,500 45,990 $141, 510 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 paid. c. New equipment is acquired for $78,600 cash. d. Received cash for the sale of equipment that had cost $69,600. yielding a $4,100 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Cash Bows from operating activities No Income Adustments to reconcile not income to not cash provided by operating Income statement lors not arocing cash Depreciation expense DOCase in inventory Decrease in prepaid expenses Changes in current operating assets TIDO Gain on sale of plant assets ncrease in accounts receivato Decrease in accounts payable Decrease in was payable Decrease in income taxes payable EES DOOOOO 315 CD Not cash provided by operating acties Cash Bow Inwosong acovitos Cash received from sale of coupe Cash paid for guipment 1 Net cash used in investing acties Cash flows from inancing activities Cash received from sale of couro as paid torrentes Cash and for aviones Niet caused Awal Cash Bows from operating activities Net Income Adustments to reconcile not income to 141,500 cash provided by operating 79.500 mont Items not affecting cash Depreciation expense Decrease in inventory Decrease in prepaid expenses Changes in current operating assets and 33200 3100 4. 1000 Gain on sale of plant assots Increase in accounts receivable 24 500 15 5OOG Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable 11.100 2.500 IS 315.100 Net cash provided by operating activities cash flows from investing activities Cash rocorved from sale of equipment Cash paid for equipment Not cash used in investing activities Cashows from financing activities Cash received from sale of equipment Cash paid to tre notes Cash paid for dividends ISIS Net cash used in financing activos Niet increase creencash ah balance at yond sh balanceat cumenty