The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, not 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 2821 2020 $ 72,500 102,500 $ 69,000 88,800 76,000 124,000 6,900 10,400 270,700 279,400 149,000 (39,500) $ 380,200 $ 50,000 8,500 140,000 (21,500) $ 397,900 $ 67,500 20,000 5,900 8,800 54,400 96,300 35,000 85,000 99,400 181,300 270,000 185,000 10,800 $ 380,200 31,600 $ 397,900 Sales Cost of goods sold IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $803,000 436,000 367,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 92,000 83,600 191,400 4,500 195,900 46,390 $ 149,510 a. A $50,000 note payable is retired at its $50,000 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 $82,600 cash. d. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 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.) 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 $ 0 0 0 Net increase (decrease) in cash $ 0 Cash balance at prior year-end Cash balance at current year-end $ 0