2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 95,500 Accounts receivable, net 95,000 Inventory 83,800 Prepaid expenses 6,400 Total current assets 280,700 Equipment 144,000 Accum. depreciation-Equipment (37,000) Total assets $387,700 Liabilities and Equity Accounts payable $ 45,000 Wages payable 8,000 Income taxes payable 5,400 Total current liabilities 58,400 Notes payable (long term) 50,000 Total liabilities 108,400 Equity Common stock, $5 par value 260,000 Retained earnings 19,300 Total liabilities and equity $387,700 $ 64,000 71,000 116,500 9,400 260,900 135,000 (19,000) $376,900 $ 60,000 19,000 7,800 86,800 80,000 166,800 180,000 30,100 $376,900 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $78,600 Other expenses 87,000 Total operating expenses $778,000 431,000 347,000 165,600 181,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,000 185,400 45,890 $139,510 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 paid. c. New equipment is acquired for $77,600 cash. d. Received cash for the sale of equipment that had cost $68,600. yielding a $4,000 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. Required information $ 214,110 Cash flows from investing activities Cash flows from financing activities 0 214,110 $ Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 214,110