Exercise 12-11 Indirect: Preparation of statement of cash flows LO P1, P2, P3 A1 [The following information applies to the questions displayed below. The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 2015 2014 Assets Cash Accounts receivable, net Inventory Prepaid expenses $ 87,500 44,000 51,000 86,500 5,400 65,000 63,800 4,400 Total current assets Equipmemt Accum. depreciation-Equipment 220,700 124,000 (27,000) 186,900 115,000 (9,000) Total assets $ 317,700 $292,900 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 25,000 30,000 15,000 3,800 6,000 3,400 Total current liabilities Notes payable (long term) 48,800 60,000 34,400 Total liabilities Equity Common stock, $5 par value Retained earnings 30,000 64,400 220,000 108,800 160,000 24,100 33,300 Total liabilities and equity $ 317,700 $292,900