IKIBAN INCORPORATED Comparative Balance Sheets At June 30 20212020 Assets Cash Accounts receivable, net $103,90074,000$50,00057,000 Inventory Prepaid expenses Total current assets \begin{tabular}{rr} 5,000 & 6,600 \\ \hline 252,700 & 209,100 \end{tabular} Equipment 130,000121,000 Accumulated depreciation-Equipment Total assets \begin{tabular}{rr} (30,000) & (12,000) \\ \hline$352,700 & $318,100 \\ \hline \end{tabular} Liabilities and Equity Accounts payable Wages payable \begin{tabular}{rr} $31,000 & $39,000 \\ 6,600 & 16,200 \\ 4,000 & 5,000 \\ \hline 41,600 & 60,200 \\ 36,000 & 66,000 \\ \hline 77,600 & 126,200 \end{tabular} Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, \$5 par value Retained earnings Total liabilities and equity \begin{tabular}{rr} 232,000 & 166,000 \\ 43,100 & 25,900 \\ \hline$352,700 & $318,100 \\ \hline \end{tabular} IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 \begin{tabular}{lr} Sales & $708,000 \\ Cost of goods sold & 417,000 \\ Gross profit & 291,000 \\ Operating expenses (excluding depreciation) & 73,000 \\ Depreciation expense & 64,600 \\ \hline & 153,400 \\ Other gains (losses) & 2,600 \\ Gain on sale of equipment & 156,000 \\ Income before taxes & 44,490 \\ Income taxes expense & $111,510 \\ Net income & \end{tabular} Additional Information a. A $30,000 notes 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 $63,600 cash. d. Received cash for the sale of equipment that had cost $54,600, yielding a $2,600gain. 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 (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities