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 3, 2019 and 2018 2019 2018 ok ht $ 80,300 83,000 75,800 5.680 244,700 136,000 (33,000) $347,700 $ 56,000 63,080 104,500 7,80 231,300 127,000 (15,000) $343, 300 int 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, 55 par value Retained earnings Total liabilities and equity ences $ 37,000 7,200 4,660 48,800 32,400 81,200 $ 48,000 17,400 6,200 71,6ee 72,000 143,600 244,000 22 500 $347,700 172,000 27,700 $343,300 $738,000 423,000 315,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $70,600 Other expenses 79.000 Total operating expenses Other gains (losses) Gain on sale of equipment Incone before taxes Income taxes expense Net income 169,600 165,400 3,200 168,600 45,090 $123, 510 Additional Information ..A 39,600 note payable is retired at its $39,600 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 $69,600 cash d. Received cash for the sale of equipment that had cost $60.600. yielding a $3,200 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 1. All purchases and sales of inventory are on credit. Using the direct mething Additional Information a. A $39,600 note payable is retired at its $39.600 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600. yielding a $3,200 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.) IKIBAN, INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0