2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 82,700 Accounts receivable, net 77,000 Inventory 71,800 Prepaid expenses 5,200 Total current assets 236,700 Equipment 132,000 Accumulated depreciation-Equipment (31,000) Total assets $ 337,700 Liabilities and Equity Accounts payable $ 33,000 Wages payable 6,800 Income taxes payable 4,200 Total current liabilities 44,000 Notes payable (long term) 31,600 Total liabilities 75,600 Equity Common stock, $5 par value 236,000 Retained earnings 26,100 Total liabilities and equity $ 337, 700 $ 52,000 59,000 98,500 7,000 216,500 123,000 (13,000) $ 326,500 ok nt nt ences $ 42,000 16,600 5,400 64,000 68,000 132,000 168,000 26,500 $ 326,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 718,000 419,000 299,000 75,000 66,600 157,400 2,800 160,200 44,690 $ 115, 510 Additional Information a. A $36,400 note payable is retired at its $36,400 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 $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600. yielding a $2,800 gain. e. Prepaid Expenses and Wages Payable relate to Operating 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, 2021. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Not increase (decrease in cash Cash balance at prior year-end