IKIBAN INCORPORATED Comparative Balance Sheets At June 30 20212020 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Bquity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total 1iabilities \begin{tabular}{rr} $105,700 & $47,000 \\ 69,500 & 54,000 \\ 66,800 & 91,000 \\ 4,700 & 6,000 \\ \hline 246,700 & 198,000 \\ 127,000 & 118,000 \\ (28,500) & (10,500) \\ \hline$345,200 & $305,500 \\ \hline & \\ \hline 28,000 & $34,500 \\ 6,300 & 15,600 \\ 3,700 & 4,400 \\ \hline 38,000 & 54,500 \\ 33,000 & 63,000 \\ \hline 71,000 & 117,500 \end{tabular} Equity Common stock, \$5 par value Retained earnings Total 1 iabilities and equity \begin{tabular}{rr} 226,000 & 163,000 \\ 48,200 & 25,000 \\ \hline$345,200 & $305,500 \\ \hline \end{tabular} IKIBAN INCORPORATED Income Statement \begin{tabular}{lr} \multicolumn{1}{lr}{ For Year Ended June 30, 2021 } & \\ Sales & 693,000 \\ Cost of goods sold & 414,000 \\ Gross profit & 279,000 \\ Operating expenses (excluding depreciation) & 70,000 \\ Depreciation expense & 61,600 \\ \hline & 147,400 \\ Other gaina (1osses) & \\ Gain on sale of equipment & 2,300 \\ Income before taxes & 149,700 \\ Income taxes expense & 44,190 \\ Net income & $105,510 \end{tabular} a. A$30,000 notes 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 1612 (Algo) Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30,2021. Note: Amounts to be deducted should be indicated with a minus sign. (1) Required information