Required information (The following information applies to the questions displayed below.) The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 101,500 Accounts receivable, net 80,000 Inventory 73,800 Prepaid expenses 5,400 Total current assets 260, 700 Equipment 134,000 Accumulated depreciation-Equipment (32,000) Total assets $ 362, 700 Liabilities and Equity Accounts payable $ 35,000 Wages payable 7,000 Income taxes payable 4,400 Total current liabilities 46,400 Notes payable (long term) 40,000 Total liabilities 86,400 Equity Common stock, $5 par value 240,000 Retained earnings 36,300 Total liabilities and equity $ 362,700 $ 54,000 61,000 101,500 7,400 223,900 125,000 (14,000) $ 334,900 $ 45,000 17,000 5,800 67,800 70,000 137,800 170,000 27.100 $ 334,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 728,000 421,000 307,000 77,000 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 $ 728,000 421,000 307,000 77,000 68,600 161,400 3,000 164,400 44,890 $ 119,510 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 pald. 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 Operating Expenses on the income statement 1. All purchases and sales of inventory are on credit. be indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end