Required information [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. 2018 IKIBAN INC Comparative Balance Sheets June 30, 2019 and 2018 2019, Assets Cart $ 87,500 Accounts receivable, net 65,000 Inventory 63,000 Prepaid expenses 4,400 Total current assets 220,700 Equipment 124.000 Accun. depreciation Equipment 27,000) Total assets $317,700 Liabilities and Equity Accounts payable $ 25,000 Wages payable 6,000 Inese taxes payable 3,400 Total current liabilities 34,400 Notes payable (long term) 30,000 Total liabilities 64,400 Equity Common stock, 55 par value Retained earnings 220,000 33,300 Total liabilities and equity $317.700 $ 44,000 51,000 86,500 5, 400 186,900 115,000 (2.000) $292,900 $ 30,000 15,000 3,800 48,800 60,000 109,800 160,000 24.100 $ 292,900 IKIBAN INC. Income Statement For Tear Ended June 30, 2019 Bales Cost of goods sold Cross profit $678,000 411.000 267.000 MacBook Air F2 80 Check Equity Common stock, $5 par value Retained earninga Total liabilities and equity 220,000 33,300 $317,700 160,000 24.100 $299,900 IKIRAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 958,600 Other expone 67,000 Total operating expenses $678,000 411,000 267.000 125,600 141.00 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Not income 2.000 143,400 43.690 $ 99,510 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 $57.500 cash. d. Received cash for the sale of equipment that had cost $48.600, yielding a $2.000 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 4. 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.) 10 of Next > 9