Use the following financial statements and additional information. 2018 LAFAYETTE INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 90,400 Accounts receivable, net 73,000 Inventory 63,000 Prepaid expenses 5,400 Total current assets 231,800 Equipment 166,000 Accumulated depreciation-Equipment (42,000) Total assets $ 355,800 Liabilities and Equity Accounts payable $ 26,000 Wages payable 7,000 Income taxes payable 4,300 Total current liabilities 37, 300 Notes payable (long term) 33,000 Total liabilities 70,300 Equity Common stock, $5 par value 240,000 Retained earnings 45,500 Total liabilities and equity $ 355,800 $ 31,100 57,000 88,000 6, 700 182,800 154,000 (14,000) $ 322,800 -s $ 32,000 18,000 4,800 54,800 65,000 119,800 170,000 33,000 $ 322,800 LAFAYETTE INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 72,000 Other expenses 85,000 Total operating expenses $ 869,000 531,000 338,000 $ 157,000 181,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,100 185, 100 56,660 $ 128,440 Additional Information a. A $32,000 note payable is retired at its $32,000 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 $71,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 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. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method