The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets. Equipment Accumulated depreciation-Equipment Total assets 2021 2020 $ 82,100 $ 53,000 78,500 72,800 60,000 100,000 5,300 7,200 238,700 220,200 133,000 124,000 (31,500) (13,500) $ 340,200 Liabilities and Equity Accounts payable $ 34,000 Wages payable 6,900 $ 330,700 $ 43,500 16,800 Income taxes payable 4,300 5,600) Total current liabilities 45,200 65,900 Notes payable (long term) Total liabilities 31,800 69,000 77,000 134,900 Equity Common stock, $5 par value 238,000 169,000 Retained earnings 25,200 26,800 Total liabilities and equity $ 340,200 $ 330,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold $ 723,000 420,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 303,000 76,000 67,600 159,400 2,900 162,300 44,790 $ 117,510 Additional Information a. A $37,200 note payable is retired at its $37,200 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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 indicated with a minus sign.) IKIRAN INCORPORATED Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted s indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities $ 0 Cash flows from investing activities Cash flows from financing activities 0 0 Net increase (decrease) in cash $ 0 Cash balance at prior year-end Cash balance at current year-end $ 0