At June 30 Assets Cash IKIBAN INCORPORATED Comparative Balance Sheets 2021 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 Total liabilities and equity For Sales Cost of goods sold Gross profit $ 102, 100 78,500 72,800 5,300 258,700 133,000 (31,500) $ 360,200 $ 34,000 6,900 4,300 45,200 39,000 84, 200 238,000 38,000 $ 360,200 IKIBAN INCORPORATED Income Statement Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation evnence 2020 $ 53,000 60,000 100,000 7,200 220, 200 124,000 (13,500) $ 330,700 $ 43,500 16,800 5,600 65,900 69,000 134,900 169,000 26,800 $ 330,700 $ 723,000 420,000 303,000 76,000 67.600

IKIBAN INCORPORATED \begin{tabular}{lrr} & \multicolumn{1}{c}{ Comparative Balance Sheets } & \\ At June 30 & 2021 & 2020 \\ Assets & & \\ Cash & 102,100 & $53,000 \\ Accounts receivable, net & 78,500 & 60,000 \\ Inventory & 72,800 & 100,000 \\ Prepaid expenses & 5,300 & 7,200 \\ Total current assets & 258,700 & 220,200 \\ Equipment & 133,000 & 124,000 \\ Accumulated depreciation-Equipment & (31,500) & (13,500) \\ Total assets & $360,200 & $330,700 \\ Liabilities and Equity & & \\ Accounts payable & $34,000 & $43,500 \\ Wages payable & 6,900 & 16,800 \\ Income taxes payable & 4,300 & 5,600 \\ Total current liabilities & 45,200 & 65,900 \\ Notes payable (long term) & 39,000 & 69,000 \\ Total liabilities & 84,200 & 134,900 \\ Equity & 238,000 & 169,000 \\ Common stock, $5 par vatue & 38,000 & 26,800 \\ Retained earnings & $360,200 & $330,700 \\ Total liabilities and equity & & \end{tabular} IKIBAN INCORPORATED Income Statement \begin{tabular}{lr} \multicolumn{1}{c}{ For Year Ended June 30, 2021} & \\ Cost of goods sold & $723,000 \\ Gross profit & 420,000 \\ Operating expenses (excluding depreciation) & 303,000 \\ nanrariatinn avnanca & 76,000 \\ & 67.G9a \end{tabular} a. A$30,000 notes payable is retired at its $30,000 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, ylelding 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. tired: 1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted shoulc pe indicated with a minus sign.)