2 The following financial statements and additional information are reported. IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 \begin{tabular}{ll|r} \hline 31 & Sales & $678,000 \\ \hline 32 & Cost of goods sold & 411,000 \\ \hline 33 & Gross profit & 267,000 \\ \hline 34 & Operating expenses (excluding depreciation) & 67,000 \\ \hline 35 & Depreciation expense & 58,600 \\ \hline 36 & & 141,400 \\ \hline 37 & Other gains (losses) & \\ \hline 38 & Gain on sale of equipment & 2,000 \\ \hline 39 & Income before taxes & 143,400 \\ \hline 40 & Income taxes expense & 43,890 \\ \hline 41 & Net income & $99,510 \\ \hline \end{tabular} (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Use cells A3 to A25 from Chart of Accounts A4 to G48 from the given information to complete this ques 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 Gain on sale of plant assets Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Cash flows from investing activities Cash paid for operating expenses Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 2 The following financial statements and additional information are reported. IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 \begin{tabular}{ll|r} \hline 31 & Sales & $678,000 \\ \hline 32 & Cost of goods sold & 411,000 \\ \hline 33 & Gross profit & 267,000 \\ \hline 34 & Operating expenses (excluding depreciation) & 67,000 \\ \hline 35 & Depreciation expense & 58,600 \\ \hline 36 & & 141,400 \\ \hline 37 & Other gains (losses) & \\ \hline 38 & Gain on sale of equipment & 2,000 \\ \hline 39 & Income before taxes & 143,400 \\ \hline 40 & Income taxes expense & 43,890 \\ \hline 41 & Net income & $99,510 \\ \hline \end{tabular} (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Use cells A3 to A25 from Chart of Accounts A4 to G48 from the given information to complete this ques 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 Gain on sale of plant assets Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Cash flows from investing activities Cash paid for operating expenses Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end