PREPARE STATEMENT OF CASHFLOWS WITH INFOR GIVEN

2019 IKIBAN INC. Comparative Balance Sheets At June 30 2020 Assets Cash $ 99,100 Accounts receivable, net 86,000 Inventory 77,800 Prepaid expenses 5,800 Total current assets 268,700 Equipment 138,000 Accum. depreciation Equipment (34,000) Total assets $372,700 Liabilities and Equity Accounts payable $ 39,000 Wages payable 7,400 Income taxes payable 4,800 Total current liabilities 51,200 Notes payable (long term) 44,000 Total liabilities 95,200 Equity Common stock, $5 par value 248,000 Retained earnings 29,500 Total liabilities and equity $372,700 $ 58,000 65,000 107,500 8,200 238, 700 129,000 (16,000) $351,700 $ 51,000 17,800 6,600 75,400 74,000 149,400 174,000 28,300 $351,700 IKIBAN INC. Income Statement For Year Ended June 30, 2020 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 $ 748,000 425,000 323,000 81,000 72,600 169,400 3,400 172,800 45,290 $ 127,510 IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 127,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 72,600 Cash received from sale of equipment (3,600) Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable 21,000 (29,700) 2,600 (12,000) (10,600) $ 196,510 Cash flows from investing activities Cash paid for equipment Gain on sale of plant assets 0 Cash flows from financing activities Cash paid to retire notes Cash flows from financing activities Cash paid to retire notes Cash paid for dividends Cash received from stock issuance 0 196,510 $ Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 196,510 Additional Information a. A $30,000 note 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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