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[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	2021	2020
Assets
Cash	$ 100,900	$ 55,000
Accounts receivable, net	81,500	62,000
Inventory	74,800	103,000
Prepaid expenses	5,500	7,600
Total current assets	262,700	227,600
Equipment	135,000	126,000
Accumulated depreciationEquipment	(32,500)	(14,500)
Total assets	$ 365,200	$ 339,100
Liabilities and Equity
Accounts payable	$ 36,000	$ 46,500
Wages payable	7,100	17,200
Income taxes payable	4,500	6,000
Total current liabilities	47,600	69,700
Notes payable (long term)	41,000	71,000
Total liabilities	88,600	140,700
Equity
Common stock, $5 par value	242,000	171,000
Retained earnings	34,600	27,400
Total liabilities and equity	$ 365,200	$ 339,100

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales	$ 733,000
Cost of goods sold	422,000
Gross profit	311,000
Operating expenses (excluding depreciation)	78,000
Depreciation expense	69,600
	163,400
Other gains (losses)
Gain on sale of equipment	3,100
Income before taxes	166,500
Income taxes expense	44,990
Net income	$ 121,510

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 $68,600 cash.
4. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 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. (Amounts to be deducted should be indicated with a minus sign.)