Required Information Exercise 12-11 Indirect: Preparing statement of cash flows LO P2, P3, [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 2019 2018 $ 96,180 93,500 82,800 6,300 278,700 143,000 (36,500) $385,200 $ 63,000 70,000 115,000 9,200 257,200 134,000 (18,500) $372,780 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 $ 44,000 7,980 5,380 57,200 49,ese 106,209 $ 58,580 18,800 7,6ee 84,900 79, eee 163,990 258, eee 21, e82 $385,200 179,800 29,880 $322, 20e IKIBAN INC Income Statement For Year Ended Tung 2010 1773,00 40. TEHNIK Income state For Year Endede SALE cost of it told Grofit Operating expenses Depreciation 1. other ep Total rating Other in () Gaisse sale of Inco fare te Income Tausen at income 19. 11. Additional Information A 530,000 notesy is retired at its 530,000 carrying book value in exchange for a b. The only changes afecting retained earnings are net income and dividends pald New equipment scoated for $76 600 cash d. Received cast for the sale of equipment that a cost $67600, yleiding a $3.900 Gain c. Prepaid Expenses and Wages Payrole relate to the perses on the income statement Al purchases and tales of inventory on credit Exercise 12-11 Part 1 Required It Prepare a statement of contows using the need for the year ended June 30, 2013 out to be deducted should be indicated with minus IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 137,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Increase in accounts receivable (23,500) Decrease in inventory 32,200 Decrease in accounts payable (14,500) Changes in current operating assets and liabilities S 131 710 Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 11.900 (78.600) (64700) Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes 79,000 (30.000