The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 83,300 75,500 70, 800 5, 100 234, 700 131,000 (30, 500) $335, 200 $ 51,000 58,000 97,000 6, 800 212,800 122,000 (12,500) $322, 300 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 32,000 6,700 4,100 42,800 31,400 74,200 $40, 500 16, 400 5, 200 62, 100 67,000 129, 100 234,000 27,000 $335,200 167,000 26, 200 $322, 300 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $65,600 Other expenses 74,000 Total operating expenses $713,000 418,000 295,000 139, 600 155,400 13 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,700 158, 100 44,590 $113,510 Additional Information a. A $35,600 note payable is retired at its $35,600 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. CUIL. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Am indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities