2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 99,700 Accounts receivable, net 84,500 Inventory 76,800 Prepaid expenses 5,700 Total current assets 266, 700 Equipment 137,000 Accumulated depreciation-Equipment (33,500) Total assets $ 370, 200 Liabilities and Equity Accounts payable $ 38,000 Wages payable 7,300 Income taxes payable 4,700 Total current liabilities 50,000 Notes payable (long term) 43,000 Total liabilities 93,000 Equity Common stock, $5 par value 246,000 Retained earnings 31, 200 Total liabilities and equity $ 370, 200 $ 57,000 64,000 106,000 8,000 235,000 128,000 (15,500) $ 347,500 $ 49,500 17,600 6,400 73,500 73,000 146,500 173,000 28,000 $ 347,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 743,000 424,000 319,000 80,000 71,600 167,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,300 170,700 45,190 $ 125,510 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 $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 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, 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 $ 125,510 Changes in current operating assets and liabilities 125,510 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 125,510 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 125,510