Answer Happy

The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 80,900 $ 55,000 Accounts receivable, net 81,500 62,000 Inventory 74,800 103,000 Prepaid expenses 5,500 7,600 242,700 227,600 Total current assets Equipment 135,000 126,000 Accumulated depreciation-Equipment (32,500) (14,500) Total assets $ 339,100 Liabilities and Equity $ 46,500 Accounts payable Wages payable 17,200 6,000 69,700 Income taxes payable Total current liabilities. Notes payable (long term) Total liabilities 71,000 140,700 Equity 171,000 Common stock, $5 par value Retained earnings 27,400 Total liabilities and equity $ 339, 100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold $ 733,000 422,000 Gross profit 311,000 78,000 Operating expenses (excluding depreciation) Depreciation expense 69,600 163,400 Other gains (losses) Gain on sale of equipment 3,100 Income before taxes 166,500 44,990 Income taxes expense Net income $ 121,510 Additional Information a. A $38,800 note payable is retired at its $38,800 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 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. $ 345,200 $ 36,000 7,100 4,500 47,600 32,200 79,800 242,000 23,400 $ 345,200
Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Cash received from customers $ 713,500 Cash paid for inventory 28,200 Cash paid for operating expenses (10,100) Cash paid for income taxes (1,500) Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 730,100 0 0 $ 730,100 $ 730,100