IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 76,700 92,000 81,800 6,200 256, 700 142,000 (36,000) $362,700 $ 62,000 69,000 113,500 9,000 253,500 133,000 (18,000) $368,500 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, $5 par value Retained earnings Total liabilities and equity $ 43,000 7,800 5, 200 56,000 33,600 89,600 $ 57,000 18,600 7.400 83,000 78,000 161,000 256,000 17,100 $362,700 178,000 29,500 $368,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $76, 600 Other expenses 85,000 Total operating expenses $768,000 429,000 339,000 161, 600 177,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,800 181,200 45,690 $135, 510 Additional Information a. A $44,400 note payable is retired at its $44,400 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 $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 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. indicated with a minus sign.) Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Direct Method)