The following financial statements and additional Information are reported. 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 79,700 Accounts receivable, net 84,500 Inventory 76,800 Prepaid expenses 5,700 Total current assets 246,700 Equipment 137,000 Accum. depreciation-Equipment (33,500) Total assets $350,200 Liabilities and Equity Accounts payable $ 38,000 Wages payable 7,300 Income taxes payable 4,700 Total current liabilities 50,000 Notes payable (long term) 32,600 Total liabilities 82,600 Equity Common stock, $5 par value 246,000 Retained earnings 21,600 Total liabilities and equity $350,200 $ 57,000 64,000 106,000 8,000 235,000 128,000 15,500) $347,500 $ 49,500 17,600 6,400 73,500 73,000 146,500 173,000 28,000 $347,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Cross profit Operating expenses Depreciation expense $71,600 Other expenses 80,000 Total operating expenses $ 743,000 424,000 319,000 151,600 167,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,300 170,700 45,190 $125,510 Income before taxes Income taxes expense Net income 170, 700 45, 190 $125,510 Additional Information a. A $40,400 note payable is retired at its $40,400 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 $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Other 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, 2019. (Amounts to be deducted should be indicated with a minus sign.) IBAN INC Statement of Cash Flowe (Direct Method) For Year Ended June 30, 2019 Cash flows from operating 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