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 $ 93,789 $ 67.ee Accounts receivable, net 99,500 74,08 Inventory 86,800 121.000 Prepaid expenses 6,789 10.000 Total current assets 286,789 272.000 Equipment 147,000 138,28 Accum. depreciation-iquipment (38.500) (20.500) Total assets $295,280 $389,500 Liabilities and Equity Accounts payable $ 48,00 $ 64,5ea Wages payable 8,300 19,6 Income taxes payable 5.7 8.49 Total current liabilities 62.ee 92,500 Notes payable (long tern) 53.ee 83.ee Total liabilities 115,00 175,500 Equity Common stock, $5 par value 266,000 183.000 Retained carnings 14,2a 31.ee Total liabilities and equity $395,20 $389.se $793,280 434.ee 359, IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $81,629 Other expenses 99,00 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 171.620 187,409 4,303 191,798 46,190 $145,512 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 $80.600 cash. d. Received cash for the sale of equipment that hed cost $71.600. yielding a $4.300 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 slgn.) 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.) Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 145,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 81.600 Gain on sale of plant assets (4.300) olo Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable (25,500) 34 200 3.300 (16,500) (11,300) (2.700) IS 204,310 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment OOOOOO OOO OOOO 12,300 (80,600) (68,300) Net cash used in investing activities Cash flows from financing activities Cash paid for dividends Cash received from stock issuance Cash paid to retire notes (162,310) 83.000 (30,000) 0 (109,310) 26,700 IS Nel cash used in financing activities Net increase (decrease in cash Cash balance at prior year-end Cash balance at current year and IS 26.700
