Graded) 9 2020 20 points Comparative Balance Sheets At June 30 2021 Aaseta Caah 5 83,900 Accounts receivable, not 74,000 Inventory 59,800 Prepaid expenses 5,000 Total current assets 232,700 Equipment 130,000 Accumulated depreciation Equipment (30,000) Total aseta $ 132,700 Liabilities and Equity Accounts payable $ 31,000 Mages payable Income taxes payable 4,000 Total current liabilities 41,600 Notes payable (long term 31,200 Total liabilities 72,000 Equity Common stock, 55 par value 232,000 Retained earnings 27.300 Total liabilities and equity $ 332,700 $50.000 57,000 95,500 6,600 209,100 121.000 (12,000) $ 318,100 eBook Hint 6,600 $39.000 16,200 5,000 60,200 66,000 126,200 it Print 166,000 25,900 $ 318,100 References IKIBAN INCORPORATED Income statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 708,000 417.000 291,000 73,000 64,600 153,400 Other gains (lossen) Gain on sale of equipment Income before taxes Income taxes expense Net Income 2,500 156,000 44.490 $ 111,510 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 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.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) Far Year Ended June 30, 2021 Cash flows from operating activities 691,000 (838.300) (81.000) (54,490) Cash received from customers Cash paid for inventory Cash paid for operating expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 5 (282,790) Net cash provided by investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 Net cash used in financing activities Net Increase (decrease in cash $ (282,790) MC Graw Hill Graded) 9 2020 20 points Comparative Balance Sheets At June 30 2021 Aaseta Caah 5 83,900 Accounts receivable, not 74,000 Inventory 59,800 Prepaid expenses 5,000 Total current assets 232,700 Equipment 130,000 Accumulated depreciation Equipment (30,000) Total aseta $ 132,700 Liabilities and Equity Accounts payable $ 31,000 Mages payable Income taxes payable 4,000 Total current liabilities 41,600 Notes payable (long term 31,200 Total liabilities 72,000 Equity Common stock, 55 par value 232,000 Retained earnings 27.300 Total liabilities and equity $ 332,700 $50.000 57,000 95,500 6,600 209,100 121.000 (12,000) $ 318,100 eBook Hint 6,600 $39.000 16,200 5,000 60,200 66,000 126,200 it Print 166,000 25,900 $ 318,100 References IKIBAN INCORPORATED Income statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 708,000 417.000 291,000 73,000 64,600 153,400 Other gains (lossen) Gain on sale of equipment Income before taxes Income taxes expense Net Income 2,500 156,000 44.490 $ 111,510 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 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.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) Far Year Ended June 30, 2021 Cash flows from operating activities 691,000 (838.300) (81.000) (54,490) Cash received from customers Cash paid for inventory Cash paid for operating expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 5 (282,790) Net cash provided by investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 Net cash used in financing activities Net Increase (decrease in cash $ (282,790) MC Graw Hill