Required information [The following information applies to the questions displayed below] The following financial statements and additional information are reported. IKIRAN 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 2019 2018 $ 96,700 $ 62,000 92,000 $1,500 69,000 113,500 6,200 9,000 276,700 253,500 142,000 133,000 (36,000) (18,000) $382,700 $368,500 7,800 5,200 $ 57,000 18.600 7,400 56,000 83,000 48,000 78,000 104,000 161,000 256,000 178,000 22,700 29,500 $382,700 $368,500 $ 43,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $700,000 429,000 339,000 $76,600 85,000 161,600 177,400 3,800 181,200 45,608 $135.510 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 $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 gain e. Prepaid Expenses and Weges 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 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0 $ D 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 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) $ 43,000 $ 96,700 $ 62,000 92,000 81,800 69,000 113,500 6,200 9,000 276,700 253,500 142,000 133,000 (36,000) (18,000) $382,700 $368,500 $ 57,000 7,800 18,600 5,200 7,400 56,000 83,000 48,000 78,000 Total liabilities 104,000 161,000 Equity Common stock, $5 par value 256,000 178,000 Retained earnings 22,700 29,500 Total liabilities and equity $382,700 $368,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $768,000 Cost of goods sold 429,000 Gross profit 339,000 Operating expenses Depreciation expense $76,600 Other expenses 85,000 Total operating expenses 161,600 177,400 Other gains (losses) Gain on sale of equipment 3,800 Income before taxes 181,200 Income taxes expense Net income 45,690 $135,510 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 pald. c. New equipment is acquired for $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 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, 20 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 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ $ 0.