Exercise 12-17B Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 ces 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 tere) Total Liabilities Equity Common stock, 55 par value Retained earnings Total lisbilities and equity $ 77,900 89,000 79,800 6,000 252,700 140,000 (35,000 $357,700 $ 60,000 67,000 110,500 8,600 246, 100 131,000 (17,000) $360, 100 $ 41,000 7.600 5,000 53,600 33,200 86,800 $ 54,000 18, 200 2.000 79,200 76,000 155,200 252,000 11.900 3357,700 176,000 28,000 $160, 100 IKIBAN INC Income Statement IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $74,600 Other expenses 83,000 Total operating expenses $758,000 427,000 331,000 157,600 173,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income ces 3,600 177,000 45,490 $131,510 Additional Information a. A $42.800 note payable is retired at its $42.800 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends pald. c. New equipment is acquired for $73,600 cash. d. Received cash for the sale of equipment that had cost $64.600, yielding a $3,600 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 indicated with a minus sign.) IKIBAN, INC Statement of Cash Flows (Direct Method) w IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash received from sale of equipment Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior yoar ond Cash balance at current year-end