The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 2015 2014 Assets Cash $ 108,800 $ 68,700 Accounts receivable, net 69,300 51,800 Inventory 65,900 96,400 Prepaid expenses 5,900 4,500 Total current assets $ 249,900 $ 221,400 Equipment 123,700 112,000 Accum. depreciationEquipment (28,600 ) (10,100 ) Total assets $ 345,000 $ 323,300 Liabilities and Equity Accounts payable $ 26,400 $ 32,000 Wages payable 7,500 17,000 Income taxes payable 2,800 4,300 Total current liabilities $ 36,700 $ 53,300 Notes payable (long term) 51,000 74,000 Total liabilities $ 87,700 $ 127,300 Equity Common stock, $5 par value 232,000 188,000 Retained earnings 25,300 8,000 Total liabilities and equity $ 345,000 $ 323,300 IKIBAN INC. Income Statement For Year Ended June 30, 2015 Sales $ 670,000 Cost of goods sold 406,000 Gross profit 264,000 Operating expenses Depreciation expense $ 58,000 Other expenses 66,100 Total operating expenses 124,100 139,900 Other gains (losses) Gain on sale of equipment 2,500 Income before taxes 142,400 Income taxes expense 56,960 Net income $ 85,440 Additional Information a. A $23,000 note payable is retired at its $23,000 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 $60,400 cash. d. Received cash for the sale of equipment that had cost $48,700, yielding a $2,500 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of merchandise inventory are on credit. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2015. (Amounts to be deducted should be indicated with a minus sign.)