Exercise 16-19B (Algo) Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 76,100 $ 63,000 Accounts receivable, net 93,500 70,000 Inventory 82,800 115,000 Prepaid expenses 6,300 9,200 Total current assets 258,700 257,200 Equipment 143,000 134,000 Accumulated depreciationEquipment (36,500) (18,500) Total assets $ 365,200 $ 372,700 Liabilities and Equity Accounts payable $ 44,000 $ 58,500 Wages payable 7,900 18,800 Income taxes payable 5,300 7,600 Total current liabilities 57,200 84,900 Notes payable (long term) 33,800 79,000 Total liabilities 91,000 163,900 Equity Common stock, $5 par value 258,000 179,000 Retained earnings 16,200 29,800 Total liabilities and equity $ 365,200 $ 372,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 773,000 Cost of goods sold 430,000 Gross profit 343,000 Operating expenses (excluding depreciation) 86,000 Depreciation expense 77,600 179,400 Other gains (losses) Gain on sale of equipment 3,900 Income before taxes 183,300 Income taxes expense 45,790 Net income $ 137,510 Additional Information A $45,200 note payable is retired at its $45,200 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $76,600 cash. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 gain. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. 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. Note: Amounts to be deducted should be indicated with a minus sign