[The following information applies to the questions displayed below] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets Assets At June 30 Cash Accounts receivable, net 2021 2020 $ 100,300 83,000 Inventory Prepaid expenses 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 75,800 $ 56,000 63,000 104,500 5,600 7,800 264,700 231,300 136,000 127,000 (33,000) (15,000) $ 367,700 $343,300 $ 37,000 7,200 4,600 48,800 $ 48,000 17,400 6,200 71,600 42,000 72,000 90,800 143,600 244,000 172,000 Retained earnings 32,900 27,700 Total liabilities and equity $ 367,700 $ 343,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold 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 $ 738,000 423,000 315,000 79,000 70,600 165,400 3,200 168,600 45,090 $123,510 a. A $30,000 notes 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 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. (Prepare a statement UI casi nows using the indirect menu for the year ended June 30, ZUZI. (Amounts to be be indicated with a minus sign.) Cash flows from operating activities Net income IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets Increase in accounts receivable Changes in current operating assets and liabilities Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable $ 123,510 70,600 (3,200) 20,000 28,700 2,200 (11,000) (10,200) (1,600) Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment 60,600 Cash flows from financing activities Cash paid to retire notes Cash paid for dividends Cash received from stock issuance Net increase (decrease) in cash $ 219,010 60,600 0 $ 279,610 Cash balance at prior year-end Cash balance at current year-end $ 279,610