The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 73,700 99,500 86,800 6,700 266,709 147,000 (38,500) $375,200 $ 67,000 74,000 121,000 10,000 272,000 138,000 (20,500 $389,500 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. 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 $ 48,000 8,300 5,700 62,000 34,600 96,600 $ 64,500 19,600 8,400 92,500 83,000 175,500 266,000 12,600 $375,200 183,000 31, $389,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $81,600 Other expenses 90,000 Total operating expenses $793,000 434,080 359,000 171,680 187,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,300 191,700 46,190 $145,510 Additional Information a. A $48.400 note payable is retired at its $48.400 carrying (book) value in exchange for cash. 11. Additional Information a. A $48,400 note payable is retired at its $48,400 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 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 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities $ 0 Cash flows from investing activities Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0