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Required information Skip to question [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC.

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[The following information applies to the questions displayed below.] The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018
2019 2018
Assets
Cash $ 105,700 $ 47,000
Accounts receivable, net 69,500 54,000
Inventory 66,800 91,000
Prepaid expenses 4,700 6,000
Total current assets 246,700 198,000
Equipment 127,000 118,000
Accum. depreciationEquipment (28,500 ) (10,500 )
Total assets $ 345,200 $ 305,500
Liabilities and Equity
Accounts payable $ 28,000 $ 34,500
Wages payable 6,300 15,600
Income taxes payable 3,700 4,400
Total current liabilities 38,000 54,500
Notes payable (long term) 33,000 63,000
Total liabilities 71,000 117,500
Equity
Common stock, $5 par value 226,000 163,000
Retained earnings 48,200 25,000
Total liabilities and equity $ 345,200 $ 305,500

IKIBAN INC. Income Statement For Year Ended June 30, 2019
Sales $ 693,000
Cost of goods sold 414,000
Gross profit 279,000
Operating expenses
Depreciation expense $ 61,600
Other expenses 70,000
Total operating expenses 131,600
147,400
Other gains (losses)
Gain on sale of equipment 2,300
Income before taxes 149,700
Income taxes expense 44,190
Net income $ 105,510

Additional Information

  1. A $30,000 note 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 $60,600 cash.
  4. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain.
  5. Prepaid Expenses and Wages Payable relate to Other 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, 2019. (Amounts to be deducted should be indicated with a minus sign.)

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