The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 77,900 $ 60,000 Accounts receivable, net 89,000 67,000 Inventory 79,800 110,500 Prepaid expenses 6,000 8,600 Total current assets 252,700 246, 100 Equipment 140,000 131,000 Accumulated depreciation-Equipment (35,000) (12,000) Total assets $ 357, 700 $360,100 Liabilities and Equity Accounts payable $ 41,000 $ 54,000 Wages payable 7,600 18,200 Income taxes payable 5,000 7.000 Total current liabilities 53,600 79,200 Notes payable (long term) 33,200 76,000 Total liabilities 86,800 155,200 Equity Common stock, $5 par value 252,000 176,000 Retained earnings 18,900 28,900 Total liabilities and equity $ 357,700 $ 360,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 758,000 427,000 331,000 83,000 74,600 173, 400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 3.600 177,000 45,490 $ 131,510 Additional Information a. A $42,800 note payable is retired at its $42.800 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 $73,600 cash d. Received cash for the sale of equipment that had cost $64,600, ylelding a $3,600 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.) Answer is not complete. IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Cash received from customers $ 736,000 (409,300) Cash paid for operating expenses (91,000) Cash paid for income taxes (47.400) ol > $ 188,300 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment 11,600 (73,600) 3 O lo (62.000) Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid for dividends Decrease in income tax payable 76,000 (141,510) (42,800) $ Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end (108,310) 17.990 60,000 77.990 $