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 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Other expenses Depreciation expense Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2019 2018 $ 93,700 99,500 $ 67,000 74,000 86,800 121,000 6,700 10,000 286,700 272,000 147,000 138,000 (38,500) (20,500) $395,200 $389,500 $ 48,000 $ 64,500 8,300 5,700 19,600 8,400 62,000 92,500 53,000 83,000 115,000 175,500 266,000 183,000 14,200 31,000 $395,200 $389,500 $793,000 434,000 359,000 $81,600 90,000 171,600 187,400 4,300 191,700 46,190 $145,510 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 $80,600 cash. Decolind each for the calo had cost $7,500 stolding $1200 asin 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 had 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 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 $ 0 Cash flows from investing activities Cash flows from financing activities 0 0 Net increase (decrease) in cash $ 0 Cash balance at prior vear-end