The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 86,300 $ 46,000 68,000 53,000 65,800 89,500 4,600 5,800 224,700 194,300 126,000 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses 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 6,200 3,600 (28,000) $ 322,700 $ 27,000 117,000 (10,000) $ 301,300 $ 33,000 15,400 4,200 36,800 52,600 30,400 62,000 67,200 114,600 224,000 162,000 31,500 24,700 Total liabilities and equity $ 322,700 $ 301,300 IKIBAN INCORPORATED Income Statement Sales Cost of goods sold For Year Ended June 30, 2021 Gross profit Operating expenses (excluding depreciation) $ 688,000 413,000 275,000 69,000 Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 operating expenses (excluding depreciation) Depreciation expense. other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 688,000 413,000 275,000 69,000 60,600 145,400 2,200 147,600 44,090 $103,510 a. A $31,600 note payable is retired at its $31,600 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 $59,600 cash. d. Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 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 be deducted should be 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 income taxes Cash paid for inventory Cash paid for operating expenses Net cash provided by operating activities 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 Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 673,000 S SA $ 0 $ 673,000 673,000 673,000 0