The following financial statements and additional information are reported.

(The following information applies to the questions displayed below.] The following financial statements and additional information are reported. 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $102,100 Accounts receivable, net 78,500 Inventory 72,800 Prepaid expenses 5,300 Total current assets 258,700 Equipment 133,000 Accum. depreciation-Equipment (31,500). Total assets $360,200 Liabilities and Equity Accounts payable $ 34,000 Wages payable 6,900 Income taxes payable 4,300 Total current liabilities 45,200 Notes payable (long term) 39,000 Total liabilities 84,200 Equity Common stock, $5 par value 238,000 Retained earnings 38,000 Total liabilities and equity $360,200 $ 53,000 60,000 100,000 7,200 220,200 124,000 (13,500) $330, 700 $ 43,500 16,800 5,600 65,900 69,000 134,900 169,000 26,800 $330,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $67,600 Other expenses 76,000 Total operating expenses $723,000 420,000 303,000 143,600 159,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,900 162,300 44,790 $117,510 Additional Information a. A $30,000 note payable is retired at its $30,000 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All ses and sales of inventory are on credit. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 117,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 67,600 Gain on sale of plant assets (2,900) Changes in current operating assets and liabilities Increase in accounts receivable Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable (18,500) 1,900 (9,500) (9,900) (1,300) $ 144,910 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 102,100 (66,600)| Cash paid for equipment (66,600) 35,500 Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 180,410 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 180,410