Required Information [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 $ 99, 100 $ 58,888 Accounts receivable, net 86,888 65,000 Inventory 77,800 107,500 Prepaid expenses 5,800 8,200 Total current assets 268,700 238,700 Equipment 138,888 129,888 Accumulated depreciation-Equipment (34,000) (16,eee) Total assets $ 372,700 $ 351,700 Liabilities and Equity Accounts payable $ 39,888 $ 51,eee Wages payable 7,480 17,800 Income taxes payable 4,888 6,600 Total current liabilities 51,200 75,400 Notes payable (long term) 44,888 74, eee Total liabilities 95,200 149,480 Equity Common stock, $5 par value 248,000 174,000 Retained earnings 29,5ee 28,300 Total liabilities and equity $ 372,700 $ 351,762 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 748,000 425,000 323,00 81,600 72,600 169,400 3,400 172,800 45,290 $ 127,510 Additional Information a. A $30,000 notes 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 pald. c. New equipment is acquired for $71.600 cash. d. Received cash for the sale of equipment that had cost $62,600. ylelding a $3,400 gain. e. Prepaid Expenses and Wages Payable relate to Operating 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, 2021. (Amounts to be deducted should be Indicated with a minus slgn.) IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense S 127,510 72.600 Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses (727,000) 395.300 78,600 S (52.990) Cash flows from investing activities 0 Cash flows from financing activities 0 (52.990) S Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end S (52,990)