SO 5 The following financial statements and additional information are reported. S 01:34:44 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 eBook Liabilities and Equity Accounts payable Wages payable Income taxes payable Hint Print eferences Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity MS IKIBAN INCORPORATED Income Statement $ 77,300 90,500 80, 800 6,100 254,700 141,000 (35,500) $ 360,200 $ 42,000 7,700 2020 $ 61,000 68,000 112,000 8,800 249,800 132,000 (17,500) $ 364,300 $ 55,500 18,400 7,200 81,100 5,100 54,800 33,400 77,000 88,200 158,100 254,000 18,000 177,000 29,200 $ 360,200 $ 364,300 Sales Cost of goods sold For Year Ended June 30, 2021 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 763,000 428,000 335,000 84,000 75,600 175,400 3,700 179,100 45,590 $ 133,510 Additional Information a. A $43,600 note payable is retired at its $43,600 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 $74,600 cash. 133 335 1.7 6 points 0133 26 eBook a. A $43,600 note payable is retired at its $43,600 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 $74,600 cash. d. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 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. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. Note: Amounts to be deducted should be indicated with a minus sign. IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Hint Print Cash received from customers References $ 0 Cash flows from investing activities Mc Cash flows from financing activities Net increase (decrease) in cash 0 0 $ 0 Cash balance at prior year-end Cash balance at current year-end $ 0