IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 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) 2019 2018 $ 63,000 $ 96,100 93,500 82,800 70,000 115,000 6,300 9,200 278,700 257,200 143,000 134,000 (36,500) (18,500) $385,200 $372,700 $ 44,000 $ 58,500 18,800 7,900 5,300 7,600 57,200 84,900 49,000 79,000 Total liabilities 106,200 163,900 Equity Common stock, $5 par value 258,000 179,000 Retained earnings 21,000 29,800 Total liabilities and equity $385,200 $372,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses Total operating expenses other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $773,000 430,000 343,000 $77,600 86,000 163,600 179,400 3,900 183,300 45,790 $137,510 Additional Information a. A $30,000 note payable is retired at its $30,000 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 $76,600 cash. d. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 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. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 0 Cash flows from investing activities Cash flows from financing activities 0 0 Net increase (decrease) in cash $ 0 Cash balance at prior year-end Cash balance at current year-end $ 0