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(Solved): The Following Financial Statements And Additional Information Are Reported. IKIBAN INC. Comparative ...

The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019			2018
Assets
Cash	$	74,900		$	65,000
Accounts receivable, net		96,500			72,000
Inventory		84,800			118,000
Prepaid expenses		6,500			9,600
Total current assets		262,700			264,600
Equipment		145,000			136,000
Accum. depreciationâ€”Equipment		(37,500	)		(19,500	)
Total assets	$	370,200		$	381,100
Liabilities and Equity
Accounts payable	$	46,000		$	61,500
Wages payable		8,100			19,200
Income taxes payable		5,500			8,000
Total current liabilities		59,600			88,700
Notes payable (long term)		34,200			81,000
Total liabilities		93,800			169,700
Equity
Common stock, $5 par value		262,000			181,000
Retained earnings		14,400			30,400
Total liabilities and equity	$	370,200		$	381,100

IKIBAN INC. Income Statement For Year Ended June 30, 2019
Sales			$	783,000
Cost of goods sold				432,000
Gross profit				351,000
Operating expenses
Depreciation expense	$	79,600
Other expenses		88,000
Total operating expenses				167,600
				183,400
Other gains (losses)
Gain on sale of equipment				4,100
Income before taxes				187,500
Income taxes expense				45,990
Net income			$	141,510

Additional Information

A $46,800 note payable is retired at its $46,800 carrying (book) value in exchange for cash.
The only changes affecting retained earnings are net income and cash dividends paid.
New equipment is acquired for $78,600 cash.
Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 gain.
Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
All purchases and sales of inventory are on credit.

Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.)

IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash f Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at pri

IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing 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

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