The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 85,100 71,000 67,800 $ 48,000 55,000 92,500 4,800 6,200 228,700 201,700 128,000 119,000 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 $ 327,700 $ 29,000 (29,000) (11,000) $ 309,700 $ 36,000 6,400 15,800 3,800 4,600 39,200 56,400 30,800 64,000 70,000 120,400 228,000 164,000 Retained earnings 29,700 25,300 Total liabilities and equity $ 327,700 $ 309,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold $ 698,000 415,000 283,000 71,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 62,600 149,400 2,400 151,800 44,290 $ 107,510 Additional Information a. A $33,200 note payable is retired at its $33,200 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 $61,600 cash. d. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 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 $ 682,000 Cash paid for inventory Cash paid for operating expenses Cash paid for income taxes Net cash provided by operating activities $ 682,000 Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance 0 Cash paid to retire notes Cash paid for dividends Net cash used in financing activities 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 682,000 48,000 $ 730,000