s The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 $ 94,300 98,000 85,800 6,600 284,700 146,000 (38,000) $ 392,700 $ 47,000 8,200 5,600 60,800 52,000 112,800 264,000 15,900 $ 392,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 2020 $ 66,000 73,000 119,500 9,800 268,300 137,000 (20,000) $385,300 $ 63,000 19,400 8,200 90,600 82,000 172,600 182,000 30,700 $ 385,300 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 $ 788,000 433,000 355,000 89,000 80,600 185,400 4,200 189,600 46,090 $ 143,510 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 paid. c. New equipment is acquired for $79,600 cash. d. Received cash for the sale of equipment that had cost $70,600, yielding a $4,200 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. eBook Print ferences Cash flows from operating activities IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 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