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 Cash $ 99,100 Accounts receivable, net 86,000 Inventory 77,800 Prepaid expenses 5,800 Total current assets 268,700 Equipment 138,000 Accum. depreciation Equipment (34,000) Total assets $372,700 Liabilities and Equity Accounts payable $ 39,000 Wages payable 7,400 Income taxes payable 4,800 Total current liabilities 51,200 Notes payable (long term) 44,000 Total liabilities 95, 200 Equity Common stock, $5 par value 248,000 Retained earnings 29,500 Total liabilities and equity $ 372,700 $ 58,000 65,000 107,500 8,200 238,700 129,000 (16,000) $351,700 $ 51,000 17,800 6,600 75,400 74,000 149,400 174,000 28,300 $351,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $72,600 Other expenses 81,000 Total operating expenses $ 748,000 425,000 323,000 153,600 169,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,400 172,800 45,290 $127,510 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets (2,000) Increase in accounts receivable (14,000) Changes in current operating assets and liabilities $ (16,000) Cash flows from investing activities $ (16,000) Cash flows from investing activities 0 Cash flows from financing activities 0 $ (16,000) Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ (16,000)