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 afe reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable $ 96,700 92,000 81,800 6,200 276,700 142,000 (36,000) $382,700 $ 62,000 69,000 113,500 9,000 253,500 133,000 (18,000) $368,500 $ 43,000 $ 57,000 Chec 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 $ 43,000 7,800 5,200 56,000 48,000 104,000 $ 57, eee 18,600 7,400 83,000 78,000 161,000 256,000 22,700 $382,700 178,000 T 29,500 $368,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $76,600 Other expenses 85,000 Total operating expenses $768,000 429,000 339,000 161,600 177,400 Other gains (losses) Gain on sale of equipment Income before taxes 3,800 181,200 --- Operating expenses Depreciation expense Other expenses Total operating expenses $76,600 85,000 161,600 177,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,800 181,200 45,690 $135,510 a Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for ca b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit