The following financial statements and additional information are reported.

IKIBAN INCORPORATED

Comparative Balance Sheets

At June $3020212020$

Assets

Cash $ $102,100$ $ $53,000$

Accounts receivable, net $78,50060,000$

Inventory $72,800100,000$

Prepaid expenses $5,3007,200$

Total current assets $258,700220,200$

Equipment $133,000124,000$

Accumulated depreciation$$Equipment $(31,500)(13,500)$

Total assets $ $360,200$ $ $330,700$

Liabilities and Equity

Accounts payable $ $34,000$ $ $43,500$

Wages payable $6,90016,800$

Income taxes payable $4,3005,600$

Total current liabilities $45,20065,900$

Notes payable $($long term$)39,00069,000$

Total liabilities $84,200134,900$

Equity

Common stock, $$5$ par value $238,000169,000$

Retained earnings $38,00026,800$

Total liabilities and equity $ $360,200$ $ $330,700$

IKIBAN INCORPORATED

Income Statement

For Year Ended June $30,2021$

Sales $ $723,000$

Cost of goods sold $420,000$

Gross profit $303,000$

Operating expenses $($excluding depreciation$)76,000$

Depreciation expense $67,600$

$159,400$

Other gains $($losses$)$

Gain on sale of equipment $2,900$

Income before taxes $162,300$

Income taxes expense $44,790$

Net income $ $117,510$

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 $$66,600$ cash.

Received cash for the sale of equipment that had cost $$57,600,$ yielding a $$2,900$ gain.

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

All purchases and sales of inventory are on credit.

Required:

$(1)$ Prepare a statement of cash flows using the indirect method for the year ended June $30,2021.$

Note: Amounts to be deducted should be indicated with a minus sign.