The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018. 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 2019 2018 $ 82,100 $ 53,000 78,500 $340, 200 $ 34,000 6,900 72,800 5,300 238,700 133,000 (31,500) 60,000 100,000 7,200 220, 200 124,000 (13,500) $330,700 $ 43,500 16,800 4,300 5,600 45, 200 65,900 31,800 69,000 77,000 134,900 Common stock, $5 par value Retained earnings 238,000 169,000 25,200 26,800 Total liabilities and equity $340, 200 $330,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $723,000 Cost of goods sold 420,000 Gross profit 303,000 Operating expenses Depreciation expense $67,600 Other expenses 76,000 Total operating expenses 143,600 159,400 Other gains (losses) Gain on sale of equipment Income before taxes 2,900 162,300 Income taxes expense Net income 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 Other 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, 2019. (Amounts to be deducted should be 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 Bows from investing activities Cash flows from financing activit Net increase (decrease) in cash Cash balance at prior year-end Cash balance at cument year-end S S