Part 1 of 2 25 pints Skipped eBook Required Information 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. IKIBAN INCORPORATED Comparative Balance Sheets At Dune 30 2021 2820 Assets Cash $ 99,300 $ 61,000 Accounts receivable, net 90,500 68,000 Inventory 89,800 112,00 Prepaid expenses 6,180 8,800 Total current assets 274,700 249,800 Equipment 141.000 132,000 Accumulated depreciation Equipment (35,500) (17,500) Total assets $ 380,200 S 364,380 Liabilities and Equity Accounts payable $ 42,000 $ 55,500 Wages payable 7.700 18,400 Income taxes payable 5,100 7,200 Total current liabilities 54, Bee 81, 100 Notes payable (long term) 42,000 72,eee Total Habilities 1e1,8ee 158, 189 Equity Common stock, $5 par value 254.ee 177,000 Retained earnings 24,400 29, 200 $ 380,200 $364,380 Total liabilities and equity Hint a Ask Print References IKIBAN INCORPORATED Income Statement For Year Ended June 3, 2021 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Grass profit Operating expenses (excluding depreciation) Depreciation expense $763, eee 428,000 335,888 84,000 75,600 175,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,700 179, 180 45,590 $ 133,510 Additional Information 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 pald. c. New equipment is acquired for $74.600 cash, d. Received cash for the sale of equipment that had cost $65.600, ylelding a $3.700 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 INCORPORATEO Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 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 S H: Ne $ Cash flows from investing activities Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0