The following financial statements and additional information are reported. 2019 IKIBAN INC. Comparative Balance Sheets At June 30 2020 Assets Cash $ 94,300 Accounts receivable, net 98,000 Inventory 85,800 Prepaid expenses 6,600 Total current assets 284,700 Equipment 146,000 Accum. depreciation-Equipment (38,000) Total assets $392,700 Liabilities and Equity Accounts payable $ 47,000 Wages payable 8,200 Income taxes payable 5,600 Total current liabilities 60,800 Notes payable (long term) 52,000 Total liabilities 112,800 Equity Common stock, $5 par value 264,000 Retained earnings 15,900 Total liabilities and equity $392,700 $ 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 INC. Income Statement For Year Ended June 30, 2020 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 Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 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 financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end