\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{c} IKIBAN INC. \\ Comparative Balance Sheets \\ June 30,2013 and 2012 \end{tabular}} \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline Cash & $111,600 & $61,300 \\ \hline Accounts receivable, net & 69,700 & 51,900 \\ \hline Inventory & 66,100 & 96,100 \\ \hline Prepaid expenses & 6,100 & 5,100 \\ \hline Equipment & 121,700 & 111,000 \\ \hline \begin{tabular}{l} Accum. depreciation- \\ Equipment \end{tabular} & (28,400) & (11,000) \\ \hline Total assets & $346,800 & $314,400 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Equity } \\ \hline Accounts payable & $26,700 & $32,400 \\ \hline Wages payable & 7,100 & 16,900 \\ \hline Income taxes payable & 2,600 & 3,900 \\ \hline Notes payable (long term) & 50,000 & 70,000 \\ \hline Common stock, $5 par value & 235,000 & 183,000 \\ \hline Retained earnings & 25,400 & 8,200 \\ \hline Total liabilities and equity & $346,800 & $314,400 \\ \hline \end{tabular} IKIBAN INC. Income Statement IKIBAN INC. Income Statement For Year Ended June 30, 2013 Sales $669,000404,000 Cost of goods sold 404,000 Gross profit 265,000 Operating expenses Depreciation expense $58,20066,000 Other expenses Total operating expenses 124,200 Other gains (losses) Gain on sale of equipment 140,800 Income before taxes 142,8002,000 Income taxes expense 57,120 Net income $85,680 Additional Information a. $20,000 note payable is retired at its $20,000 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 $60,200 cash. d. Received cash for the sale of equipment that had cost $49,500, yielding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income e. statement. f. All purchases and sales of merchandise inventory are on credit. Required: (1) Prepare a statement of cash flows for the year ended June 30, 2013, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Required information IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2013 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Required information