of 2 Exercise 12-12 (Algo) 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. zeze ook IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2821 Assets Cash $ 102,100 Accounts receivable, net 78,500 Inventory 72,800 Prepaid expenses 5,3ee Total current assets 258, 7ee Equipment 133,000 Accumulated depreciation-Equipment (31,5ee) Total assets $360,200 Liabilities and Equity Accounts payable $ 34,00 Wages payable 6,900 Income taxes payable 4,300 Total current liabilities 45, 2ee Notes payable (long tern) 39,000 Total liabilities 84,2ee Equity Common stock, 35 par value 238,000 Retained earnings 38, eee Total liabilities and equity $360,200 $ 53,eee 6e, eee 1ee,eee 7,28 220,200 124,900 (13.500) $ 330,700 ht $ 43,500 16, see 5,6ee 65,9ee 69, cee 134,900 ces 169, eee 26, see $ 330,700 IKIBAN INCORPORATED Income statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 5 723,00 420, eee 3e3,000 76,000 67,6ee 159,400 2.900 162,300 44,790 $ 117,51e Additional Information .. 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 pald, c. New equipment is acquired for $66,600 cash d. Received cash for the sale of equipment that had cost $57,600. yielding a $2,900 gain e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement 1. All purchases and sales of Inventory are on credit IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of plant assets 117,510 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 hces S 117 510 Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 S 117.510 Net Increase (decrease in cash Cash balance at prior year-end Cash balance at current year-end $ 117,510