4 1 of 2 Required information [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 02:44:34 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 2021 2020 $ 96,700 92,000 $ 62,000 81,800 69,000 113,500 6,200 9,000 276,700 253,500 133,000 eBook Hint Print Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities 5,200 142,000 (36,000) $ 382,700 $ 43,000 7,800 (18,000) $368,500 $ 57,000 18,600 7,400 56,000 83,000 48,000 78,000 104,000 161,000 Equity eferences Common stock, $5 par value Retained earnings 256,000 178,000 22,700 29,500 Total liabilities and equity $382,700 $ 368,500 ic Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 768,000 429,000 339,000 85,000 76,600 177,400 3,800 181,200 45,690 $ 135,510 Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income porting Cash Flows Exercises Assignment Gain on sale of equipment Income before taxes. Income taxes expense Net income. 3,800 181,200 45,690 $ 135,510 Saved 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 $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 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. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities Net income IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 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 12 cs Required information 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 Changes in current operating assets and liabilities. Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0 $ 0 $ 0 9