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. 2014 IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 2015 Assets Cash $ 113,100 Accounts receivable, net 69,600 Inventory 66,100 Prepaid expenses 4,700 $ 60,100 51,900 96,100 6,400 Total current assets Equipment Accum. depreciation-Equipment 253,500 122,000 (28,200) 214,500 112,000 (10,200) Total assets $ 347,300 $ 316,300 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 26,900 7,200 2,800 $ 32,000 16,500 4,000 Total current liabilities Notes payable (long term) 36,900 50,000 52,500 71,000 86,900 123,500 Total liabilities Equity Common stock, $5 par value Retained earnings 235,000 25,400 185,000 7,800 Total liabilities and equity $ 347,300 $ 316,300 Exercise 12-11 Part 1 Required: (1) Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2015 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 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0