Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 83,900 74,000 69,800 5,000 232,700 130,000 (30,000) $332,700 $ 50,000 57,000 95,500 6,600 209,190 121,000 (12,000) $318,100 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. 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 $ 31,000 6,600 4,000 41,600 31,200 72,800 $ 39,000 16,200 5,000 60,200 66,000 126,200 232,000 27.900 $332,700 166,000 25.900 $318,100 Help IKIAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $64,600 Other expenses 73,000 Total operating expenses $708,000 417,000 291,000 137,600 153,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,609 156,880 44,490 $111,510 5 Additional Information a. A $34.800 note payable is retired at its $34.800 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 $63,600 cash. d. Received cash for the sale of equipment that had cost $54,600. ylelding a $2,600 gain. e. Prepaid Expenses and Wages Payable relate to Other 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 2019 (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities 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