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 Total liabilities and equity 2021 2020 $ 103,300 75,500 $ 51,000 58,000 70,800 97,000 5,100 6,800 254,700 212,800 131,000 (30,500) $ 355,200 $ 32,000 6,700 4,100 42,800 122,000 (12,500) $ 322,300 $ 40,500 16,400 5,200 62,100) 37,000 67,000 79,800 129,100 234,000 167,000 41,400 $ 355,200 26,200 $ 322,300 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 713,000 418,000 295,000 74,000 65,600 155,400 2,700 158,100 44,590 $ 113,510