2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 97,300 Accounts receivable, net 90,500 Inventory 80, 800 Prepaid expenses 6,100 Total current assets 274,700 Equipment 141,000 Accum. depreciation-Equipment (35,500) Total assets $380, 200 Liabilities and Equity Accounts payable $ 42,000 Wages payable 7,700 Income taxes payable 5,100 Total current liabilities 54,800 Notes payable (long term) 47,000 Total liabilities 101,800 Equity Common stock, $5 par value 254,000 Retained earnings 24,400 Total liabilities and equity $380,200 $ 61,000 68,000 112,000 8,800 249,800 132,000 (17,500) $364,300 $ 55,500 18,400 7,200 81,100 77,000 158,100 177,000 29, 200 $364,300 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $763,000 Coat of goods sold 428,000 Gross profit 335,000 Operating expenses Depreciation expense $75,600 Other expenses 84,000 Total operating 159, 600 expenses 175,400 Other gains (losses) Gain on sale of 3,700 equipment Income before taxes 179, 100 Income taxes expense 45, 590 Net income $133, 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 $74,600 cash. d. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 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. Required: (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.) D) Focus