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The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets Cash Accounts receivable, net Prepaid

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The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 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 Total liabilities and equity Sales Cost of goods sold IKIBAN INCORPORATED Income Statement 2020 $ 83,300 75,500 70,800 $ 51,000 58,000 97,000 5,100 6,800 234,700 212,800 131,000 (30,500) $ 335,200 $ 32,000 6,700 122,000 (12,500) $ 322,300 $ 40,500 16,400 5,200 4,100 42,800 62,100 31,400 67,000 74,200 129,100 234,000 167,000 27,000 $ 335,200 For Year Ended June 30, 2021 26,200 $ 322,300 $ 713,000 418,000 295,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 74,000 65,600 155,400 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 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. Note: 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 flows from investing activities Cash flows from financing activities Net increase (decrease) in cash 0 $ 0 Cash balance at prior year-end Cash balance at current year-end $ 0

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