Required information Exercise 12-12 (Algo) 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 INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Equipment Accumulated 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 2021 2020 $ 100,300 $ 56,000 83,000 75,800 63,000 104,500 5,600 7,800 264,700 231,300 $ 367,700 $ 37,000 7,200 4,600 6,200 48,800 71,600 42,000 72,000 90,800 143,600 244,000 172,000 32,900 27,700 Total liabilities and equity $ 367,700 $ 343,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 738,000 Cost of goods sold 136,000 (33,000) $ 343,300 $ 48,000 17,400 127,000 (15,000) Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 423,000 315,000 79,000 70,600 165,400 3,200 168,600 45,090 $ 123,510