a. A $41,200 note payoble is retired at its $41,200 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 $71,600 cash. d. Received cosh for the sale of equipment that had cost $62,600, ylelding a $3,400 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. t. 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. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 20 points \begin{tabular}{|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{4}{|c|}{ IKIBAN INCORPORATED }} \\ \hline \multirow{2}{*}{ At June 30 Comparative Balance } & & & \\ \hline & \begin{tabular}{l} Sheets \\ 2021 \end{tabular} & \multicolumn{2}{|r|}{2020} \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash & $79,100 & & 58,000 \\ \hline Accounts receivable, net & 86,000 & & 65,000 \\ \hline Inventory & 77,800 & & 107,500 \\ \hline Prepaid expenses & 5,800 & & 8,200 \\ \hline Total current assets & 248,700 & & 238,700 \\ \hline Equipment & 138,000 & & 129,000 \\ \hline Accumulated depreciation-Equipnent: & (34,000) & & (16,000) \\ \hline rotal assets & $352,700 & $ & 351,700 \\ \hline \multicolumn{4}{|l|}{ Liabilities and Equity } \\ \hline Accounts payable & $39,000 & & 51,000 \\ \hline Wages payable & 7,400 & & 17,800 \\ \hline Income taxes payable & 4,800 & & 6,600 \\ \hline Total current liabilities & 51,200 & & 75,400 \\ \hline Notes payable (long term) & 32,800 & & 74,000 \\ \hline Total liabilities & 84,000 & & 149,400 \\ \hline \multicolumn{4}{|l|}{ Equity } \\ \hline Common stock, $5 par value & 248,000 & & 174,000 \\ \hline Retained earnings & 20,700 & & 28,300 \\ \hline Total liabilities and equity & $352,700 & $ & 351,700 \\ \hline \end{tabular} References 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