Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings $ 82,100 78,500 $ 53,000 60,000 100,000 72,800 5,300 7,200 238,700 220,200 133,000 $ 340,200 (31,500) $ 34,000 6,900 124,000 (13,500) $ 330,700 $ 43,500 16,800 5,600 4,380 45,200 65,900 31,880 69,000 77,000 134,900 238,000 169,000 25,200 26,800 $ 340,200 $ 330,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Total liabilities and equity Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 723,000 420,000 303,000 76,000 67,680 159,400 2,900 162,300 44,790 $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. 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. Note: 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 S 0 Cash flows from investing activities Cash flows from financing activities 0 0 Net increase (decrease) in cash S 0