Use the following financial statements and additional information.

IKIBAN INC.
Comparative Balance Sheets
June 30, 2015 and 2014
		2015		2014
Assets
Cash		$87,500		$44,000
Accounts receivable, net		65,000		51,000
Inventory		63,800		86,500
Prepaid expenses		4,400		5,400
Total current assets		$220,700		$186,900
Equipment		124,000		115,000
Accum. depreciationEquipment		(27,000)		(9,000)
Total assets		$317,700		$292,900
Liabilities and Equity
Accounts payable		$25,000		$30,000
Wages payable		6,000		15,000
Income taxes payable		3,400		3,800
Total current liabilities		$34,400		$48,800
Notes payable (long term)		30,000		60,000
Total liabilities		$64,400		$108,800
Equity
Common stock, $5 par value		220,000		160,000
Retained earnings		33,300		24,100
Total liabilities and equity		$317,700		$292,900
IKIBAN INC.
Income Statement
For Year Ended June 30, 2015
Sales				$678,000
Cost of goods sold				411,000
Gross profit				267,000
Operating expenses
Depreciation expense		$58,600
Other expenses		67,000
Total operating expenses				125,600
				141,400
Other gains (losses)
Gain on sale of equipment				2,000
Income before taxes				143,400
Income taxes expense				43,890
Net income				$99,510

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 $57,600 cash.
d.	Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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. General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2014 and June 30, 2015. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2015 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method.