! Required Information Exercise 12-11 Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] 2018 $ 274,7ee The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 97,3ee Accounts receivable, net 99,500 Inventory 88,888 Prepaid expenses 6, 10e Total current assets Equipment 141,080 Accum. depreciation Equipment (35,500) Total assets $ 382,200 Liabilities and Equity Accounts payable $ 42,eee Wages payable 7,760 Income taxes payable 5,180 Total current liabilities 54,800 Notes payable (long term) 47, eee Total liabilities 101, see Equity Common stock, $5 par value 254, eee Retained earnings 24,480 Total liabilities and equity $ 380, 2ee 61,00 68,00 112,880 8.800 249,880 132.ee (17,5ee) 364, 30e $ $ 55,5ee 18,400 7,2ee 81,100 77,000 158, 10e 177,600 29,200 364,360 $ IKIBAN INC. Income Statement For Year Ended June 30, 2019 763,000 428,000 335,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $ 75,600 84,800 159,600 175,400 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 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 $74,600 cash. d. Received cash for the sale of equipment that had cost $65.600. yielding a $3.700 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. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 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 $ 0 Cash flows from investing activities 0 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