IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 76,100 93,500 82,800 6,300 258,700 143,000 (36,500) $365,200 $ 63,000 70,000 115,000 9,200 257,200 134,000 (18,500) $372,700 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 $ 44,000 7,909 5,300 57,200 33,800 91,000 $ 58,500 18,800 7,600 84,900 79,000 163,900 258,000 16,200 $365,200 179,000 29,800 $372,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $77,600 Other expenses 86,000 Total operating expenses $773,000 430,000 343,000 163,600 179,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,900 183,300 45,790 $137,510 Additional Information a. A $45,200 note payable is retired at its $45,200 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 (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end