The following financial statements and additional information are reported.. At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 86,900 66,500 $ 45,000 52,000 64,800 88,000 4,500 5,600 222,700 190,600 125,000 116,000 (9,500) Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity. Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity (27,500) $ 320,200 $ 26,000 6,100 $ 297,100 $ 31,500 15,200 3,500 4,000 35,600 50,700 30,200 61,000 65,800 111,700 222,000 32,400 161,000 24,400 $ 320,200 $ 297,100 IKIBAN INCORPORATED Income Statement Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense For Year Ended June 30, 2021 $ 683,000 412,000 271,000 68,000 59,600 143,400 2,100 145,500 43,990 $ 101,510 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information a. A $30,800 note payable is retired at its $30,800 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 $58,600 cash. d. Received cash for the sale of equipment that had cost $49,600, yielding a $2,100 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. Additional Information a. A $30,800 note payable is retired at its $30,800 carrying (book) value in exchange b. The only changes affecting retained earnings are net income and cash dividends c. New equipment is acquired for $58,600 cash. d. Received cash for the sale of equipment that had cost $49,600, yielding a $2,100 e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income 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 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 hces Cash paid for operating expenses 31,500 (68,000) Cash paid for income taxes Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities Cash paid to retire notes Cash received from stock issuance Cash paid for dividends Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ (36,500) 0 0 $ (36,500) $ (36,500)