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 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 2021 2020 $ 87,500 65,000 $ 44,000 51,000 63,800 86,500 4,400 5,400 220,700 186,900 124,000 115,000 (27,000) $ 317,700 $ 25,000 6,000 3,400 (9,000) $ 292,900 $ 30,000 15,000 3,800 48,800 34,400 30,000 60,000 64,400 108,800 220,000 160,000 33,300 24,100 Total liabilities and equity $ 317,700 $ 292,900 IKIBAN INCORPORATED Income Statement Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) For Year Ended June 30, 2021 $ 678,000 411,000 267,000 67,000 58,600 141,400 2,000 143,400 Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 43,890 $ 99,510 a. A $30,000 note payable is retired at its $30,000 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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. s of MX mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https% 6 Maps Sign In M Inbox (7,173) - qui... Smartbook: Chapt... CQuary Company is D. The only changes arecury retained earnings are met income and COSI CIVICE c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2 e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the in f. All purchases and sales of inventory are on credit. Using the direct method, prepare the statement of cash flows for the year ended 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 Cash paid for operating expenses Cash paid for income taxes $ 87,500 22,700 $ 110,200 Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 0 Net increase (decrease) in cash $ 110.200 Cash balance at prior year-end Cash balance at current year-end $ 110,200