2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 74,300 Accounts receivable, net 98,000 Inventory 85,800 Prepaid expenses 6,600 Total current assets 264,700 Equipment 146,000 Accum. depreciation-Equipment (38,000) Total assets $372,700 Liabilities and Equity Accounts payable $ 47,000 Wages payable 8, 200 Income taxes payable 5,600 Total current liabilities 60,800 Notes payable (long term) 34,400 Total liabilities 95,200 Equity Common stock, $5 par value 264,000 Retained earnings 13,500 Total liabilities and equity $372,700 $ 66,000 73,000 119,500 9,800 268,300 137,000 (20,000) $385,300 $ 63,000 19,400 8,200 90,600 82,000 172,600 182,000 30,700 $385, 300 $788,000 433,000 355,000 IRIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $80,600 Other expenses 89,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 169,600 185,400 4,200 189,600 46,990 $143,510 Additional Information a. A $47,600 note payable is retired at its $47,600 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 $79,600 cash d. Received cash for the sale of equipment that had cost $70.600. yielding a $4,200 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. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing 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