The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014
	2015				2014
Assets
Cash	$	100,500			$	53,500
Accounts receivable, net		69,100				51,800
Inventory		66,500				96,700
Prepaid expenses		5,200				6,100
Total current assets		241,300				208,100
Equipment		131,900				120,000
Accum. depreciationEquipment		(28,300	)			(10,000	)
Total assets	$	344,900			$	318,100
Liabilities and Equity
Accounts payable	$	27,000			$	32,100
Wages payable		7,500				16,300
Income taxes payable		2,900				3,900
Total current liabilities		37,400				52,300
Notes payable (long term)		50,000				78,000
Total liabilities		87,400				130,300
Equity
Common stock, $5 par value		232,000				180,000
Retained earnings		25,500				7,800
Total liabilities and equity	$	344,900			$	318,100

IKIBAN INC. Income Statement For Year Ended June 30, 2015
Sales				$	678,000
Cost of goods sold					407,000
Gross profit					271,000
Operating expenses
Depreciation expense	$	58,400
Other expenses		66,100
Total operating expenses					124,500
					146,500
Other gains (losses)
Gain on sale of equipment					2,800
Income before taxes					149,300
Income taxes expense					59,720
Net income				$	89,580

a.	A $28,000 note payable is retired at its $28,000 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 $61,100 cash.
d.	Received cash for the sale of equipment that had cost $49,200, yielding a $2,800 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.

IKIBAN, INC.
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2015
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash
Cash balance at prior year-end
Cash balance at current year-end