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 IKIRAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $104,500 Accounts receivable, net 72,500 Inventory 68.800 Prepaid expenses 4,900 Total current assets 250,700 Equipment 129,000 Accum. depreciation-Equipment (29,500) $350,200 Total assets Liabilities and Equity 30.000 Accounts payable Wages payable 6,500 3,900 Income taxes payable 40.400 Total current liabilities 35,000 Notes payable (long term) 75,400 Total liabilities Equity 230,000 Common stock, 55 par value 44,800 Retained earnings $350,200 Total liabilities and equity $ 49,000 56,000 94,000 6,400 205,400 120,000 01.500) $313,900 37,500 16,000 58,300 65,000 123,300 165,000 25,600 $313,900 IKIBAN INC. Income Statement For Year Ended June 10, 2019 Sales Cost of goods sold $70,000 416,000 1992 of 2 !! Next > Exercise 12-11 Part 1 Required: KO) 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 Net income $ 109,510 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 Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable 109,510 Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Next > Cash received from sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable 109,510 Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities 109,510 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 109,510