Exercise 12-11 Indirect: Preparing statement of cash flows LO 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, 2019 and 2018 2019 2018 Assets Cash $ 96, 100 $ 63,000 Accounts receivable, net 93,500 70,000 Inventory B2,800 115,000 Prepaid expenses 6,300 9,200 Total current assets 278, 700 257,200 Equipment 143,000 134, 800 Accum depreciation-Equipment (36,500) (18,500) Total assets $385, 280 $372,790 Liabilities and Equity Accounts payable $44,000 $ 58, 588 Wages payable 7,990 18, 800 Income taxes payable 5,300 7,600 Total current liabilities 57296 84,989 Notes payable (long term) 49,00 79,000 Total liabilities 106, 200 163, 900 Equity Common stock, 55 par value 258,000 179,900 Retained earnings 21, 000 29, 890 Total liabilities and equity $385,200 $372, 760 IKTEAN INC Income Statement Ear Var att 3 4 of 5 w hp Required information of 2 . IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income 137.510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 77,600 Gain on sale of plant assets (3,900) Book Hire Print references Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable $ 211, 210 Net cash provided by investing activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment M Graw Hill