The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 81,500 Accounts receivable, net 80,000 Inventory 73,800 Prepaid expenses 5,400 Total current assets 240,700 Equipment 134,000 Accumulated depreciation-Equipment (32,000) Total assets $ 342,780 Liabilities and Equity Accounts payable $ 35,000 Wages payable 7,000 Income taxes payable 4,400 Total current liabilities 46,400 Notes payable (long term) 32,000 Total liabilities 78,400 Equity Common stock, $5 par value 240,000 Retained earnings 24,300 Total liabilities and equity $ 342,700 $ 54,000 61,000 101,500 7,400 223,900 125,000 (14,000) $ 334,900 $ 45,000 17,000 5,800 67,800 70,000 137,800 170,000 27,100 $ 334,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 728,000 421,000 307,000 77,000 68,600 161,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,000 164,400 44,890 $ 119,510 Additional Information a. A $38,000 note payable is retired at its $38,000 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 $67,600 cash. d. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 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. (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 Cash received from customers Cash paid for inventory Cash paid for operating expenses Cash paid for income taxes $ 0 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 0 Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 $ 0 Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0