5 - points eBook # Hint Print 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 2021 2020 Assets $ $ Cash 102,700 52,000 Accounts receivable, net 77,000 59,000 Inventory 71,800 98,500 Prepaid expenses 5,200 7,000 Total current assets 256,700 216,500 Equipment 132,000 123,00 Accumulated depreciation- Equipment (31,000) (13,000) $ Total assets 357,700 326,500 Liabilities and Equity $ $ Accounts payable 33,000 42,000 Wages payable 6,800 16,600 Income taxes payable 4,280 5,400 Total current liabilities 44,000 64,000 Notes payable (long term) 38,000 68,000 Total liabilities 82,000 132,000 Equity Common stock, $5 par 236,000 168,000 value Retained earnings 39,700 26,500 Total liabilities and equity 357,700 326,500 Reference IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 718,000 Cost of goods sold 419,000 Gross profit 299,000 Operating expenses (excluding depreciation) 75,000 Depreciation expense 66,600 157,400 Other gains (losses) Gain on sale of equipment 2,800 Income before taxes 160,200 Income taxes expense 44,690 Net income $ 115, 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 pald. c. New equipment is acquired for $65,600 cash d. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 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. (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 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