Required information Exercise 12-11 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 INC. Comparative Balance Sheets June 30, 2019 and 2018 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 IKIBAN INC. Income Statement For Year Ended June 30, 2019 2019 2018 $ 95,500 95,000 $ 64,000 83,800 71,000 116,500 6,400 9,400 280,700 260,900 144,000 135,000 (37,000) (19,000) $387,700 $376,900 $ 45,000 $ 60,000 8,000 19,000 5,400 7,800 58,400 86,800 50,000 80,000 108,400 166,800 260,000 180,000 19,300 30,100 $387,700 $376,900 Sales $778,000 Cost of goods sold 431,000 Gross profit 347,000 Operating expenses Depreciation expense $78,600 Other expenses 87,000 Total operating expenses 165,600 181,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 4,000 185,400 45,890