IKIBAN INCORPORATEDComparative Balance Sheets2021At June 30AssetsCashAccounts receivable, netInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciationEquipmentTotal assetsNotes payable (long term)Total liabilities.EquityCommon stock, $5 parvalueRetained earnings.Total liabilities and.equityLiabilities and Equity)Accounts payableWages payableIncome taxes payable.Total current liabilities 39,200SalesCost of goods sold.Gross profit$105,10071,00067,8004,800248,700128,000(29,000)$347,700Cash flows from operating activities$29,0006,4003,800IKIBAN INCORPORATEDIncome StatementFor Year Ended June 30, 2021Operating expenses (excludingdepreciation)Depreciation expense:Other gains (losses)Gain on sale of equipmentIncome before taxesIncome taxes expenseNet incomeCash flows from investing activities228,00046,500$347,700Cash flows from financing activitiesNet increase (decrease) in cashCash balance at prior year-endCash balance at current year-end2020$48,00055,00092,5006,200201,700119,000(11,000)56,40034,00064,00073,200 120,400TESTERISTChanges in current operating assets and liabilities$309,700$36,00015,8004,600Additional Informationa. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cashb. The only changes affecting retained earnings are net income and cash dividends paid.c. New equipment is acquired for $61,600 cash.d. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 gain.e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the Income statement.f. All purchases and sales of Inventory are on credit.164,00025,300$309,700Required:(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to bededucted should be indicated with a minus sign.)$ 698,000415,000283,00071,000IKIBAN, INCORPORATEDStatement of Cash Flows (Indirect Method)For Year Ended June 30, 202162,600149,4002,400151,80044,290$ 107,510Adjustments to reconcile net income to net cash provided byoperating activitiesIncome statement items not affecting cash$$

Statement of cash flows : It is the financial statement that shows the flow of cash from the…

IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets. Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Equity Common stock, $5 part value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Notes payable (long term) 34,000 Total liabilities 73,200 $ 105,100 71,000 67,800 4,800 248,700 128,000 (29,000) $ 347,700 29,000 6,400 3,800 39,200 Operating expenses (excluding depreciation) Depreciation expense Cash flows from operating activities IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 228,000 46,500 $ 347,700 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 2020 $ 48,000 55,000 92,500 6,200 201,700 119,000 (11,000) $ 309,700 Changes in current operating assets and liabilities $ 36,000 15,800 4,600 56,400 64,000 120,400 Additional Information a. A $30,000 notes 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 $61,600 cash. d. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the Income statement. f. All purchases and sales of Inventory are on credit. 164,000 25,300 $ 309,700 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) $ 698,000 415,000 283,000 71,000 62,600 149,400 IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 2,400 151,800 44,290 $ 107,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ $ 0 0 0