Required

General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019.

Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method.

Indirect Method tab - Prepare the reconciliation to the indirect method

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2018 ZEPHYR INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 79,400 Accounts receivable, net 73,000 Inventory 65,000 Prepaid expenses 6,400 Total current assets 223,800 Equipment 208,000 Accum. depreciation-Equipment (51,000) Total assets $380,800 Liabilities and Equity Accounts payable $ 28,000 Wages payable 6,000 Income taxes payable 3,800 Total current liabilities 37,800 Notes payable (long term) 35,000 Total liabilities Equity Common stock, $5 par value 250,000 Retained earnings 58,000 Total liabilities and equity $380,800 $ 15,200 57,000 90,000 8,000 170,200 193,000 (17,000) $346,200 $ 34,000 16,000 4,200 54,200 70,000 124, 200 180,000 42,000 $346,200 ZEPHYR INC. Income Statement For Year Ended June 30, 2019 Sales $1,124,000 Cost of goods sold 687,000 Gross profit 437,000 Operating expenses Depreciation expense $ 95,000 Other expenses 111,000 Total operating expenses 206,000 231,000 Other gains (losses) Gain on sale of equipment 8,700 Income before taxes 239, 700 Income taxes expense 73, 370 Net income 166,330 Additional Information a. A $35,000 note payable is retired at its $35,000 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 $93,000 cash. d. Received cash for the sale of equipment that had cost $78,000, yielding a $8,700 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. ZEPHYR 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: ZEPHYR INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: 2018 ZEPHYR INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 79,400 Accounts receivable, net 73,000 Inventory 65,000 Prepaid expenses 6,400 Total current assets 223,800 Equipment 208,000 Accum. depreciation-Equipment (51,000) Total assets $380,800 Liabilities and Equity Accounts payable $ 28,000 Wages payable 6,000 Income taxes payable 3,800 Total current liabilities 37,800 Notes payable (long term) 35,000 Total liabilities Equity Common stock, $5 par value 250,000 Retained earnings 58,000 Total liabilities and equity $380,800 $ 15,200 57,000 90,000 8,000 170,200 193,000 (17,000) $346,200 $ 34,000 16,000 4,200 54,200 70,000 124, 200 180,000 42,000 $346,200 ZEPHYR INC. Income Statement For Year Ended June 30, 2019 Sales $1,124,000 Cost of goods sold 687,000 Gross profit 437,000 Operating expenses Depreciation expense $ 95,000 Other expenses 111,000 Total operating expenses 206,000 231,000 Other gains (losses) Gain on sale of equipment 8,700 Income before taxes 239, 700 Income taxes expense 73, 370 Net income 166,330 Additional Information a. A $35,000 note payable is retired at its $35,000 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 $93,000 cash. d. Received cash for the sale of equipment that had cost $78,000, yielding a $8,700 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. ZEPHYR 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: ZEPHYR INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities