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The following financial statements and additional information are reported. 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 72,500 Accounts receivable, net 102,500 Inventory 88,800 Prepaid expenses 6,900 Total current assets 270, 700 Equipment 149,000 Accum. depreciation-Equipment (39,500) Total assets $380,200 Liabilities and Equity Accounts payable $ 50,000 Wages payable 8,500 Income taxes payable 5,900 Total current liabiliti 64,400 Notes payable (long term) 35,000 Total liabilities 99,400 Equity Common stock, $5 par value 270,000 Retained earnings 10,800 Total liabilities and equity $380,200 $ 69,000 76,000 124,000 10,400 279,400 140,000 (21,500) $397,900 $ 67,500 20,000 8,800 96,300 85,000 181,300 185,000 31,600 $397,900 IKIBAN INC. Income Statemen For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses 000 436,000 367,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $83,600 Other expenses 92,000 Total operating expenses $803,000 436,000 367,000 eBook 175,600 191,400 Hint Print Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,500 195,900 46,390 $149,510 Additional Information a. A $50,000 note payable is retired at its $50,000 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 $82,600 cash. d. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 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. IKIBAN, 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 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end

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