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 $100,300 $ 56,000 Accounts receivable, net 83,000 63,000 Inventory 75,800 104,500 Prepaid expenses 5,600 7,800 Total current assets 264, 700 231,300 Equipment 136,000 127,000 Accum. depreciation Equipment (33,000) (15,000) Total assets $367,700 $343,300 Liabilities and Equity Accounts payable $ 37,000 $ 48,000 Wages payable 7,200 17,400 Income taxes payable 4,600 6,200 Total current liabilities 48,800 71,600 Notes payable (long term) 42,000 72,000 Total liabilities 90,800143,600 Equity Common stock, $5 par value 244,000 172,000 Retained earnings 32,900 27,700 Total liabilities and equity $367,700 $343,300 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 70,600 Other expenses 79,000 Total operating expenses $ 738,000 423,000 315,000 149,600 165,400 Other gains (losses) Cain on sale of equipment Income before taxes Income taxes expense Net income 3,200 168,600 45,090 $123,510 Income before taxes Income taxes expense Net income 168,600 45,090 $123,510 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 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 Ju should be Indicated with a minus sign.) INC. Statement of Cash Flowe (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 financing activities Required Information Changes in current operating assets and liabilities 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