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 2018 2019 Assets $ 56,00e 63,00e 184,5ee 7,80e $1ee,30e Cash Accounts receivable, net Inventory Prepaid expenses Total current assetS 83,eee 75,800 5.68e 231,3ee 127,pee 264, 70e 136, eee (33, ) Equipment Accum. depreciation-Equipment (15,000) $367,70e $343, 30e Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) total liabi11ities Equity Common stock $5 par value Retained earnings $ 37,000 $ 48,eee 7, 20e 4,600 17:40e 6,200 48, 80e 42,eee 71,688 72,e00 98,880 143,600 244,e00 32,900 172, eve 27.700 Total liabilities and equity s367,70e $343,300 1KIBAN INC IKIBAN INC. Income Statement For Year Ended June 30, 2019 $738,000 423, eee Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses 315, eee $70, 600 79,e00 149,600 Total operating expenses 165,400 Other gains (losses) Gain on sale of equipment 3, 200 168,600 45,090 Income before taxes Income taxes expense Net income $123,510 Additionel Information a. A $30,000 note payable is retired at its $30.000 carrying (book) valu b. The only changes affecting retained earnings are net income and ca c. New equipment is acquired for $69.600 cash d. Received cash for the sale of equipment that had cost $60,600 ylelc e. Prepaid Expenses and Wages Payable relate to Other Expenses on t 1. All purchases and sales of inventory are on credit 2 Homework Check my work mode: This shows what is correct Required information IKIBAN, INC. Statement of Cash Flows (Indirect Method) 1 or2 For Year Ended June 30, 2019 Cash flows from operating activities Net income Adjustments to reconoile 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 ourrent operating assets and liabilities Cash fous from nvesting activites Caoom ngng acivtes Pe Type here to search OE Required information Depreciation expense Cash received from sale of equipment of 2 Increase in aCounts receivable Changes in curent operating assels and liabilities Cash flows from investing activities 0 Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0