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 2019 $ 56,000 63,000 184,500 sae $100, 300 83,880 75,800 5,600 264,780 136,00 eae) $362,78e 231, 3ee 127.pee (15,Bee) $343, 380 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, 55 par value Retained earnings Total liabilities and equity $ 37.00 $ 48 wae 200 doe 4,608 saa 48,800 42,00 98,888 143,60a 244,00 32900 ue IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $70,600 Other expenses 79,880 Total operating expenses $738,899 423,00 315, eee 149, 680 165, 499 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,200 158, 680 45,899 512,510 - Additional Information a. A $30.000 note payable s retired at its $30.000 carrying book) valu b. The only changes affecting retained earnings are net income and ca C. New equipment is accuired for $69.600 cash d. Received cash for the sale of equipment that had cost $60.600. Vield e. Prepaid Expenses and Wages Payal e relate to Other Expenses ant 1. All purchases and sales of inventory are on credit 2 Homework Check my work mode: This shows what is correct w Required information 1of2 Statement of Cash Flows Indirect Method For Year Ended June 30, 2019 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 Depreciation expense Cash received from sale of equipment Increase in accounts receivable Changes in current operating assets and abilities Type here to search O E Required information Depreciation expense Cash received from sale of equipment Increase in accounts receivable Changes in current operating assets and liabilities / / / / Cash flows from investing activities Cash flows from financing activities Net increase (decrease in cash Cash balance at prior year-end Cash balance at current year-end