The following financial statements and additional information are reported.

IKIBAN INCORPORATED

Comparative Balance Sheets

At June $3020222021$

Assets

Cash $ $96,100$ $ $63,000$

Accounts receivable, net $93,50070,000$

Inventory $82,800115,000$

Prepaid expenses $6,3009,200$

Total current assets $278,700257,200$

Equipment $143,000134,000$

Accumulated depreciation$$Equipment $(36,500)(18,500)$

Total assets $ $385,200$ $ $372,700$

Liabilities and Equity

Accounts payable $ $44,000$ $ $58,500$

Wages payable $7,90018,800$

Income taxes payable $5,3007,600$

Total current liabilities $57,20084,900$

Notes payable $($long term$)49,00079,000$

Total liabilities $106,200163,900$

Equity

Common stock, $$5$ par value $258,000179,000$

Retained earnings $21,00029,800$

Total liabilities and equity $ $385,200$ $ $372,700$

IKIBAN INCORPORATED

Income Statement

For Year Ended June $30,2022$

Sales $ $773,000$

Cost of goods sold $430,000$

Gross profit $343,000$

Operating expenses $($excluding depreciation$)86,000$

Depreciation expense $77,600$

$179,400$

Other gains $($losses$)$

Gain on sale of equipment $3,900$

Income before taxes $183,300$

Income taxes expense $45,790$

Net income $ $137,510$

Additional Information

A $$30,000$ notes payable is retired at its $$30,000$ carrying $($book$)$ value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $$76,600$ cash.

Received cash for the sale of equipment that had cost $$67,600,$ yielding a $$3,900$ gain.

Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

All purchases and sales of inventory are on credit.

Required:

Prepare a statement of cash flows using the indirect method for the current year ended June $30.$