Exercise 12-19B (Algo) Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. 2020 $ 51,000 58,000 97,000 6,800 212,800 122,000 (12,500) $ 322,300 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 83,300 Accounts receivable, net 75,500 Inventory 70,800 Prepaid expenses 5, 100 Total current assets 234,700 Equipment 131,000 Accumulated depreciation-Equipment (30,500) Total assets $ 335,200 Liabilities and Equity Accounts payable $ 32,000 Wages payable 6,700 Income taxes payable 4,100 Total current liabilities 42,800 Notes payable (long term) 31,400 Total liabilities 74,200 Equity Common stock, $5 par value 234,000 Retained earnings 27,000 Total liabilities and equity $ 335,200 $ 40,500 16,400 5,200 62,100 67,000 129, 100 167,000 26,200 $ 322,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 713,000 418,000 295,000 74,000 65,600 155,400 2,700 158, 100 44,590 $ 113,510 Additional Information a. A $35,600 note payable is retired at its $35,600 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 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. (Amounts to be deducted should be indicated with a minus sign.) IKIRAN INCORDODATEN 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. (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 $ 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 BER