Required information Exercise 16-12 (Static) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 87, 500 $ 44, 000 Accounts receivable, net 65, 000 51, 000 Inventory 63, 800 86, 500 Prepaid expenses 4, 400 5 , 400 Total current assets 220, 700 186, 900 Equipment 124, 000 115, 000 Accumulated depreciation-Equipment (27, 000) (9, 000) Total assets $ 317 , 700 $ 292, 900 Liabilities and Equity Accounts payable $ 25, 000 $ 30,000 Wages payable 6, 000 15, 000 Income taxes payable 3, 400 3,800 Total current liabilities 34, 400 48, 800 Notes payable ( long term) 30 , 000 60, 000 Total liabilities 64, 400 108, 800 Equity Common stock, $5 par value 220,000 160, 000 Retained earnings 33, 300 24, 100 Total liabilities and equity $ 317, 700 $ 292, 900 IKIBAN INCORPORATED Income, Statement For Year Ended June 30, 2021 Sales $ 678, 000 Cost of goods sold 411, 000 Gross profit 267, 000