Cash flows from investing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities 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 $63,600 cash. d. Received cash for the sale of equipment that had cost $54,600, yielding a $2,600 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. \begin{tabular}{lrr} \multicolumn{1}{c}{ IKIBAN INCORPORATED } \\ & \multicolumn{2}{c}{} \\ & Comparative Balance Sheets & \\ At June 30 & 2021 & 2020 \\ Assets & & \\ Cash & $103,900 & $0,000 \\ Accounts receivable, net & 74,000 & 57,000 \\ Inventory & 69,800 & 95,500 \\ Prepaid expenses & 5,000 & 6,600 \\ Total current assets & 252,700 & 209,100 \\ Equipment & 130,000 & 121,000 \\ Accumulated depreciation-Equipment & (30,000) & (12,000) \\ Total assets & $352,700 & $318,100 \\ Liabilities and Equity & & \\ Accounts payable & $31,000 & $39,000 \\ Wages payable & 6,600 & 16,200 \\ Income taxes payable & 4,000 & 5,000 \\ Total current liabilities & 41,600 & 60,200 \\ Notes payable (long term) & 36,000 & 66,000 \\ Total liabilities & 77,600 & 126,200 \\ Equity & & \\ Common stock, $5 par value & 232,000 & 166,000 \\ Retained earnings & 43,100 & 25,900 \\ Total liabilities and equity & $352,700 & $318,100 \\ \hline \end{tabular}