11 Part 1 of 2 -- 4.76 points acok Required information Exercise 16-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 (The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets at June 30 Sheet1 2020 Assets Cash $ 105,100 $ 48,000 Accounts receivable, net 71,000 55,000 Inventory 67,800 92,500 Prepaid expenses 4,800 6,200 Total current assets 248UU 296700 Equipment 128,000 119,000 Accumulated depreciation Equipment 129,000) (11,000) Total assets $ 309,700 Liabilities and Equity accounts payable $ 29,000 $36.000 Wages payable 6,400 15,800 Income taxes payable 3,800 4.600 Total current liabilities 30 U Notes payable (long term) 34,000 64,000 Total Ilabilities 73 1920,400 Common stock, $5 par value 228,000 164.000 Retained carnings 46,500 25.300 Total Labilities and equity $ 309,700 Hint $ 347,700 Print References Equity IKIBAN INCORPORATED Income Statanant Por Year Ended June 30, 2021 Sales Coat of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Incone before taxes Income taxes expensa Set income S 698,000 435.000 205,000 71,000 62.600 119,00 2,400 11, SUU 44,290 $ 107,510 Additional Information a. A $30,000 notes 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 $61,600 cash. d. Received cash for the sale of equipment that had cost $52.600, yielding a $2.400 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. Exercise 16-12 (Algo) Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Cash paid for operating expenses $ 107,510 62,800 Changes in current operating assets and liabilities Decrease in inventory Increase in accounts receivable Decrease in prepard expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Cash received from sale of equipment 24,700 (16,000) 1,400 17.000) 19.400) (800) (2,400 S 160,610 Cash flows from investing activities (51 200) (67600) Cash paid for equipment (112,600) Cash flows from financing activities Cash paid for dividends Cash paid for dividends Net cash provided by financing actives Net increase (decrease in cash Cash balance at prior year end Cash balance at current year-end S 47,810 IS 47.8101