Required information (The following information applies to the questions displayed below) The following financial statements and additional information are reported. 2 IKTBAN INC Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $100,900 81,500 74,800 5.500 262,200 135,ace (32.5ee) $365,200 $ 55,000 62,000 103,000 7.600 227,600 126,000 (14.500) $339,100 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accun depreciation Equipment Total assets Liabilities and Equity Accounts payable Hoges payable Income taxes payable Total current liabilities Notes payable (long tern) Total liabilities Equity Common stock, 35 par value Retained earnings Total liabilities and equity $ 36,000 7.100 4,500 47.600 41,000 88,600 546,500 17,200 6,000 69,700 71.000 140,790 242,000 34,600 $365,200 171,000 27,4ee $339, 100 IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Grossrofit $733.000 122,000 111.0 BE 6(Ch12) 100 pts. Due: March 7 Seved Help Save & Exit Sul 7 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $69,60 Other expenses 78,000 Total operating expenses $733,000 422,000 311.000 147.600 163,400 Other gains (losses) Gain on sale of equipent Income before taxes Income taxes expense Net Income 2.100 166,500 44.900 $121,510 1.5620 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 not income and cash dividends paid, c. New equipment is acquired for $68,600 cash d. Received cash for the sale of equipment that had cost $59,600 yielding a $3100 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 1. All purchases and sales of Inventory are on credit Required: (1) Prepare a statement of cash flows using the Indirect method for the year onded June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) 4. Required information TKBAN, INC Statement of Cash Flows (indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities rt 1 of 2 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Ints 8015609 Changes in current operating assets and liabilities Cash flows from investing activities Cash rows from financing activities Required information 4 Changes in current operating assets and liabilities 102 2015 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