Please do not give solution in image format thanku Exercise 16-19B (Algo) Direct: Preparing statement of cash flows LO P5The following financial statements and additional Information are reported.At June 30AssetsCashAccounts receivable, netInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsIKIBAN INCORPORATEDComparative Balance SheetsLiabilities and EquityAccounts payableWages payableIncome taxes payableTotal current liabilitiesNotes payable (long term)Total liabilitiesEquityCommon stock, $5 par valueRetained earningsTotal liabilities and equitySalesCost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expenseOther gains (losses)Gain on sale of equipmentIncome before taxesIncome taxes expenseNet Income2021$86,90066,50064,8004,500222,788125,000(27,500)$ 320,200IKIBAN INCORPORATEDIncome StatementFor Year Ended June 30, 2021$ 26,000,1003,50035,60830, 20065,800222,00032,400$ 320,2002828$ 45,00052,00088,0005,600190,600116,000(9,500)$ 297,100$ 31,5004,00050,70061,000111,700161,00024,400$ 297,100$ 683,000412,000271,00068,00059,600143,4002,100145,50043,990$ 101,510 Net incomeAdditional Informationa. A $30,800 note payable is retired at its $30,800 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 $58,600 cashd. Received cash for the sale of equipment that had cost $49,600, yielding a $2,100 gain.e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the Income statement.1. All purchases and sales of Inventory are on credit.Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021.Note: Amounts to be deducted should be indicated with a minus sign.IKIBAN, INCORPORATEDStatement of Cash Flows (Direct Method)For Year Ended June 30, 2021Cash flows from operating activities$ 101,510Cash flows from investing activitiesCash flows from financing activitiesNet increase (decrease) in cashCash balance at prior year-endCash balance at current year-end$$$00000

Exercise 16-19B (Algo) Direct: Preparing statement of cash flows LO P5 The following financial statements and additional Information are reported. At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets IKIBAN INCORPORATED Comparative Balance Sheets 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 Retained earnings Total liabilities and equity 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 2021 $ 86,900 66,500 64,800 4,500 222,700 125,000 (27,500) $ 320,208 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 26,000 3,500 35,608 30, 200 65,800 222,000 32,400 $ 320,200 2828 $ 45,000 52,000 88,000 5,600 190,600 116,000 (9,500) $ 297,100 $ 31,500 200 4,000 58,700 61,000 111,700 161,000 24,400 $ 297,100 $ 683,000 412,000 271,000 68,000 59,600 143,400 2,100 145,500 43,990 $ 101,510