Indicated x Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash received from customers $ 668,500 Decrease in merchandise inventory X 394,300 X Cash paid for operating expenses 76,000 X Cash paid for equipment x 44,490 X $ 1,183,290 Cash fiows from investing activities Cash paid for equipment Cash received from sale of equipment (58,600) 10,100 (48,500) Net cash provided by investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 61,000 (30,800) (93,510) X Net cash provided by financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end (63,310) $ 1,071,480 86,900 X $ 1,158,380 Exercise 12-17B Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. 2018 IKIBAN ING! Comparative Balance Sheets June 30 2019 and 2018 2019 Assets Cash $ 86,900 Accounts receivable, net 66,500 Inventory 64 800 Prepaid expenses 4,500 Total current assets 222700 Equipment 125,000 Accum. depreciation--Equipment (27 500) Total assets $320,200 Liabilities and Equity Accounts payable $ 26,000 Wages payable 6,100 Income taxes payable 3,500 Total current liabilities 35,600 Notes payable (long term) 30, 200 Total liabilities 65,800 Equity Common stock, $5 par value 222,000 Retained earnings 32,400 Total liabilities and equity $320,200 $ 45,000 52,000 88,000 5,600 190600 116,000 (9,500) $297, 100 $ 31,500 15,200 4,000 50, 700 61,000 111,700 161,000 24,400 $297, 100 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 59,600 Other expenses 68,000 Total operating expenses $683,000 412,000 271,000 127,600 143,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,100 145,500 43,990 $101,510 Additional Information a. A $30,800 note payable is retired at its $30,800 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 $58,600 cash. d. Received cash for the sale of equipment that had cost $49,600, yielding a $2,100 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. (Amounts to be deducted s indicated with a minus sign.) * Answer is not complete