The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 79,100 Accounts receivable, net 86,000 Inventory 77,800 Prepaid expenses 5,800 Total current assets 248,700 Equipment 138,000 Accumulated depreciation-Equipment (34,000) Total assets $ 352,700 Liabilities and Equity Accounts payable $ 39,000 Wages payable 7,400 Income taxes payable 4,800 Total current liabilities 51,200 Notes payable (long term) 32,800 Total liabilities 84,000 Equity Common stock, $5 par value 248,000 Retained earnings 20,700 Total liabilities and equity $ 352,700 $ 58,000 65,000 107,500 8, 200 238,700 129,000 (16,000) $ 351,700 $ 51,000 17,800 6,600 75,400 74,000 149,400 174,000 28,300 $ 351,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 748,000 425,000 323,000 81,000 72,600 169,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,400 172,800 45,290 $ 127,510 Additional Information a. A $41,200 note payable is retired at its $41,200 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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 Net income $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end