5 The following financial statements and additional information are reported. 2020 $ 46,000 53,000 89,500 5,800 20 194,300 117,000 (10,000) $ 301,300 Book IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 86,300 Accounts receivable, net 68,000 Inventory 65,800 Prepaid expenses 4,600 Total current assets 224,700 Equipment 126,000 Accumulated depreciation Equipment (28,000 Tatal assets $ 322,700 Liabilities and Equity Accounts payable $ 27,000 Wages payable 6,200 Income taxes payable 3,600 Total current liabilities 36,800 Nates payable (long term) 30,400 Tatal liabilities 67,200 Equity Common stock, $5 par value 224,000 Retained earnings 31,500 Total liabilities and equity $ 322,700 30 Hint $ 33,000 15,400 4,200 52,600 62,000 Print 114,600 0 erences 162,000 24,700 $ 301,300 IKIBAN INCORPORATED Income Statement Por Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 68,000 413,000 275,000 69,000 60,600 145,400 2,200 147,600 44,090 $ 103,510 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information a. A $31,600 note payable is retired at its $31,600 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 $59,600 cash. d. Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 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.) 3 a. A $31,600 note payable is retired at its $31,600 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 $59,600 cash. d. Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 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.) Book Hint IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Print erences 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