The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 97,900 Accounts receivable, net 89, eee Inventory 79,see Prepaid expenses 6, eee Total current assets 272, 7ee Equipment 140, eee Accumulated depreciation-Equipment (35, eee) Total assets $ 377, 7ee Liabilities and Equity Accounts payable $ 41, eee Wages payable 7,600 Income taxes payable 5, eee Total current liabilities 53, see Notes payable (long term) 46, eee Total liabilities 99,600 Equity Common stock, $5 par value 252, eee Retained earnings 26,1ee Total liabilities and equity $ 377,700 $ 60, eae 67, eee 119,5ee 8,600 246,1ee 131, eee (17.ee) $360, 100 $ 54,000 18, 2ee Z, eee 79,200 76,eee 155, 2ee 176,000 28,900 $360,100 IKIBAN INCORPORATED Income Statement For Year Ended June 3e, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 758, eee 427,eee 331, eee 83, eee 74,6ee 173,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,600 177, eee 45,490 $ 131,510 Additional Information a. A $30,000 notes payable is retired at its $30,000 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 $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 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 IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Yoar Endod June 30, 2021 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