Additional Information aA $41,200 note payable is retired at its $41,200 carrying (book) value in exchange for cash b. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a \$3,400 gain e. 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 .)

Exercise 12-17B Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 79,100 $ 58,000 Accounts receivable, net 86,000 65,000 Inventory 77,800 107,500 Prepaid expenses 5,800 8,200 Total current assets 248,700 238, 700 Equipment 138,000 129,000 Accum. depreciation-Equipment (34,000) (16.000 Total assets $352, 700 $351,700 Liabilities and Equity Accounts payable $ 39,000 $ 51,000 Wages payable 7,400 17,800 Income taxes payable 4,800 6,600 Total current liabilities 51,200 75,400 Notes payable (long term) 32,800 74,000 Total liabilities 84,000 149,400 Equity Common stock, $5 par value 248,000 174,000 Retained earnings 20,700 28,300 Total liabilities and equity $352,700 $351,700 IKIBAN INC. Income Statement For Year Inded June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $72,600 Other expenses 51.000 Total operating expenses $749,000 425,000 323.000 153,600 169,400 Other gains (loses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,400 172,800 45,290 $127.510 Additional Information a. A $41.200 note payable is retired at its $41,200 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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. 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 flow martinari indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ Cash flows from investing activities Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0