IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 97,900 89,000 79,800 6,000 272,700 140,000 (35,000 $377,700 $ 60,000 67,000 110,500 8,600 246,100 131,000 (17,000) $360,100 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 41,000 7,600 5,000 53,600 46,000 99,600 $ 54,000 18,200 7,000 79,200 76,000 155,200 252,000 26,100 $377,700 176,000 28,900 $360, 100 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $74,600 Other expenses 83,000 Total operating expenses $758,000 427,000 331,000 157,600 173,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,600 177,000 45,490 $131,510 Additional Information a. A $30,000 note 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 paid. c. New equipment is acquired for $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 gain. e. Prepaid Expenses and Wages Payable relate to Other 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, 2019. (A be indicated with a minus sign.) * Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 131,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 74,600 Gain on sale of plant assets (3,600) >> O Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory (22.000) 30 700