! Required information (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 $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 Accum. depreciation-Equipment (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 $733,000 422,000 311,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $69,600 Other expenses 78,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 147,600 163,400 3,100 166,500 44,990 $121,510 Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. 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.) 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.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end