2019 $ 55,000 62,000 103,000 7,600 227,600 126,000 (14,500) $339, 100 IKIBAN INC. Comparative Balance Sheets At June 30 2020 Assets Cash $100,900 Accounts receivable, net 81,500 Inventory 74,800 Prepaid expenses 5,500 Total current assets 262,700 Equipment 135,000 Accum. depreciation-Equipment (32,500) Total assets $365,200 Liabilities and Equity Accounts payable $ 36,000 Wages payable 7,100 Income taxes payable 4,500 Total current liabilities 47,600 Notes payable (long term) 41,000 Total liabilities 88,600 Equity Common stock, $5 par value 242,000 Retained earnings 34,600 Total liabilities and equity $365,200 $ 46,500 17,200 6,000 69, 700 71,000 140,700 171,000 27,400 $339, 100 IKIBAN INC. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold $ 733,000 422,000 IKIBAN INC. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 733,000 422,000 311,000 78,000 69,600 163, 400 3,100 166,500 44,990 $ 121,510 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 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 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ $ 0