2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 77,900 Accounts receivable, net 89,000 Inventory 79,800 Prepaid expenses 6,000 Total current assets 252,700 Equipment 140,000 Accumulated depreciation Equipment (35,000) Total assets $ 357,700 Liabilities and Equity Accounts payable $ 41,000 Wages payable 7,600 Income taxes payable 5,000 Total current liabilities 53,600 Notes payable (long term) 33,200 Total liabilities 86,800 Equity Common stock, $5 par value 252,000 Retained earnings 18,900 Total liabilities and equity $ 357,700 $ 60,000 67,000 110,500 8,600 246,100 131,000 (17,000) $ 360,100 $ 54,000 18, 200 7,000 79,200 76,000 155,200 176,000 28,900 $ 360,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 758,000 427,000 331,000 83,000 74,600 173,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,600 177,000 45, 490 $ 131,510 Additional Information a. A $42,800 note payable is retired at its $42,800 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 $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 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.) Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities $ 0 Cash flows from investing activities Cash flows from financing activities 0 $ Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end