9 The following financial statements and additional information are reported. 2020 nts eBook $ 53,000 60,000 100,000 7,200 220,200 124,000 (13,500) $ 330,700 Hint IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 82,100 Accounts receivable, net 78,500 Inventory 72,800 Prepaid expenses 5,300 Total current assets 238, 700 Equipment 133,000 Accumulated depreciation--Equipment (31,500) Total assets $ 340,200 Liabilities and Equity Accounts payable $ 34,000 Wages payable 6,900 Income taxes payable 4,300 Total current liabilities 45,200 Notes payable (long term) 31,800 Total liabilities 77,000 Equity Common stock, $5 par value 238,000 Retained earnings 25, 200 Total liabilities and equity $ 340,200 Print References $ 43,500 16,800 5,600 65,900 69,000 134,900 169,000 26,800 $ 330,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 723,000 420.000 303,000 76,000 67,600 159,400 1 Retained earmings Total liabilities and equity 25,200 $ 340,200 26.800 $ 330,700 IKIDAN INCORPORATED Income Statement Yor Year Ended June 30, 2021 Sales Cont of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 723,000 420.000 303,000 76,000 67,600 159.400 1 Other gains (lossen) Gain on sale of equipment Income before taxes Income taxes expense Tiet Income 2.900 162,300 44,790 5 117.510 Additional Information a. A $37,200 note payable is retired at its $37.200 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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. 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.) 9 IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities 20 points eBook Hint Print $ 0 References Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end S 0