The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 99,100 86,000 77,800 5,800 268,700 138,000 (34,000). $372,700 $ 58,000 65,000 107,500 8,200 238,700 129,000 (16,000) $351,700 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 $ 39,000 7,400 4,800 51,200 44,000 95,200 $ 51,000 17,800 6,600 75,400 74,000 149,400 248,000 29,500 $372,700 174,000 28,300 $351,700 IKIRAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $72,609 Other expenses 81,000 Total operating expenses $748,eee 425,000 323,eee 153,600 169,489 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,480 172,800 45,290 $127,519 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600. yielding a $3,400 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. Required information Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 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 investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end