The following financial statements and additional information 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 82,700 Accounts receivable, net 77,000 Inventory 71,800 Prepaid expenses 5,200 Total current assets 236, 700 Equipment 132,000 Accumulated depreciation- (31, 000) Equipment $ 52,000 59,000 98,500 7,000 216,500 123,000 (13,000) Total assets $ 326,500 337, 700 Liabilities and Equity Accounts payable $ 33,000 $ 42,000 Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings $ 33,000 6,800 4,200 44,000 31,600 75,600 $ 42,000 16,600 5,400 64,000 68,000 132,000 236,000 26, 100 $ 337,700 168,000 26,500 $ 326,500 Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding $ 718,000 419,000 299,000 75. Aan IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 718,000 419,000 299,000 75,000 66,600 157,400 es Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,800 160, 200 44,690 $ 115,510 Additional Information Dro income $ 115,510 itional Information $36,400 note payable is retired at its $36,400 carrying (book) value in exchange for ca The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $65,600 cash. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 gain. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income stater All purchases and sales of inventory are on credit. sing the direct method, prepare the statement of cash flows for the year ended June 30, 20 o be deducted should be indicated with a minus sign.) IKIBAN, INCORPORATED CA LP