IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30	2021	2020
Assets
Cash	$ 85,100	$ 48,000
Accounts receivable, net	71,000	55,000
Inventory	67,800	92,500
Prepaid expenses	4,800	6,200
Total current assets	228,700	201,700
Equipment	128,000	119,000
Accumulated depreciationEquipment	(29,000)	(11,000)
Total assets	$ 327,700	$ 309,700
Liabilities and Equity
Accounts payable	$ 29,000	$ 36,000
Wages payable	6,400	15,800
Income taxes payable	3,800	4,600
Total current liabilities	39,200	56,400
Notes payable (long term)	30,800	64,000
Total liabilities	70,000	120,400
Equity
Common stock, $5 par value	228,000	164,000
Retained earnings	29,700	25,300
Total liabilities and equity	$ 327,700	$ 309,700

IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information a. A $33,200 note payable is retired at its $33,200 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 $61,600 cash. d. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 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. IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (A deducted should be indicated with a minus sign.) Cash flows from operating activities Cash flows from investing activities $ 698,000 415,000 283,000 71,000 62,600 149,400 Cash flows from financing activities 2,400 151,800 44, 290 $ 107,510 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ $ $ 0 0 0 0 0