2020 ANION AMURPURRICU Comparative Balance Sheets At June 30 2021 Assets Cash $ 85,700 Accounts receivable, net 69,500 Inventory 66,800 Prepaid expenses 4,700 Total current assets 226,700 Equipment 127,000 Accumulated depreciation-Equipment (28,500) Total assets $ 325,200 Liabilities and Equity Accounts payable $ 28,000 Wages payable 6,300 Income taxes payable 3,700 Total current liabilities 38,000 Notes payable (long term) 30,600 Total liabilities 68,600 Equity Common stock, $5 par Value 226,800 Retained earnings 38,600 Total liabilities and equity $ 325,200 $ 47,000 54,000 91,000 6,eee 198,000 118,000 (10,5ee) $ 305,500 $ 34,500 15,689 4,400 54,500 63,000 117,500 163,000 25, eee $ 305, see IKIBAN INCORPORATED Income Statement for Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 693,008 414,000 279,000 70,000 61,600 147,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 2.300 149,780 44,190 $ 105,510 Additional Information a. A $32,400 note payable is retired at its $32.400 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement 1. All purchases and sales of inventory are on credit IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Cash received from customers $ 677,500 Cash paid for income taxes Cash paid for operating expenses Cash paid for inventory $ 677,500 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 0 Net cash used in investing activities Cash flows from financing activities Cash paid to retire notes Cash received from stock issuance Cash paid for dividends $ 677,500 Net cash used in financing activities Net Increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 677,500