(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.)

Chapter 12 Exercise A Saved 2019 2018 2.5 points $ 93,700 99,500 86,800 6,700 286,700 147,000 (38,500) $395,200 $ 67,000 74,000 121,000 10,000 272,000 138,000 (20,500) $389,500 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity eBook $ 48,000 8,300 5,700 62,000 53,000 115,000 $ 64,500 19,600 8,400 92,500 83,000 175,500 Hint Print 266,000 14,200 $395,200 183,000 31,000 $389,500 References IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $81,600 Other expenses 90,000 Total operating expenses $793,000 434,000 359,000 171,600 187,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,300 191,700 46,199 $145,510 Additional Information a. A $30,000 note payable is retired at its $30,000 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 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. In riuadaIFICIULLANILMOVS USINIU NI E UIT VOLUNU JUUSI TAI Required information 2.5 points IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities eBook Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Hint Cash paid for dividends Changes in current operating assets and liabilities Print References 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