m Solving Exercise 16-17B Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 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 IKIBAN INC. Income Statement For Year Ended June 30, 2019 2019 2018 $ 81,500 $ 54,000 80,000 73,800 61,000 101,500 5,400 7,400 240,700 223,900 134,000 125,000 (32,000) (14,000) $342,700 $334,900 $ 35,000 7,000 4,400 46,400 $ 45,000 17,000 5,800 67,800 32,000 70,000 78,400 137,800 240,000 170,000 24,300 27,100 $342,700 $334,900 Sales $728,000 Cost of goods sold 421,000 Gross profit 307,000 Operating expenses Depreciation expense $68,600 Other expenses 77,000 Total operating expenses 145,600 161,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,000 164,400 44,890 $119,510 Additional Information 15 5.65 paints Seppe look a. A $38,000 note payable is retired at its $38,000 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 $67,600 cash. d. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 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 should be indicated with a minus sign.) KIBAN, INC. Salument of Cash Flows (Direct Method) For Year Ended June 30, 2019) Cash flows from operating activities References Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance af current year-end $ 0 0 $ 0