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The following financial statements and additional information are reported.

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30	2021	2020
Assets
Cash	$ 96,100	$ 63,000
Accounts receivable, net	93,500	70,000
Inventory	82,800	115,000
Prepaid expenses	6,300	9,200
Total current assets	278,700	257,200
Equipment	143,000	134,000
Accumulated depreciationEquipment	(36,500)	(18,500)
Total assets	$ 385,200	$ 372,700
Liabilities and Equity
Accounts payable	$ 44,000	$ 58,500
Wages payable	7,900	18,800
Income taxes payable	5,300	7,600
Total current liabilities	57,200	84,900
Notes payable (long term)	49,000	79,000
Total liabilities	106,200	163,900
Equity
Common stock, $5 par value	258,000	179,000
Retained earnings	21,000	29,800
Total liabilities and equity	$ 385,200	$ 372,700

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales	$ 773,000
Cost of goods sold	430,000
Gross profit	343,000
Operating expenses (excluding depreciation)	86,000
Depreciation expense	77,600
	179,400
Other gains (losses)
Gain on sale of equipment	3,900
Income before taxes	183,300
Income taxes expense	45,790
Net income	$ 137,510

Additional Information

1. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $76,600 cash.
4. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 gain.
5. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

Required:

(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021.

Note: Amounts to be deducted should be indicated with a minus sign.