The following financial statements and additional Information are reported. At June 30 IKIBAN INCORPORATED Comparative Balance Sheets Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment 2021 2020 $ 105,100 71,000 67,800 $ 48,000 55,000 92,500 6,200 4,800 248,700 128,000 201,700 119,000 (11,000) Additional Information Required: a. A $30,000 notes 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 $61,600 cash. d. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the Income statement f. All purchases and sales of Inventory are on credit (1) Prepare a statement of cash flows using the Indirect method for the year ended June 30, 2021. Note: Amounts to be deducted should be indicated with a minus sign. Depreciation expense Gain on sale of plant assets Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Accumulated depreciation-Equipment (29,000) 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 $ 347,700 $ 309,700 $ 29,000 $ 36,000 6,400 3,800 15,800 4,600 Answer is not complete. 39,200 56,400 34,000 73,200 64,000 120,400 IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 228,000 46,500 164,000 25,300 Cash flows from operating activities $ 347,700 Net income $ 309,700 IKIBAN INCORPORATED Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Sales Cost of goods sold Income Statement For Year Ended June 30, 2021 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income S 107.510 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash flows from financing activities 00000 0 62,600 (2,400) (16,000) 24,700 (7,000) (9,400) (800) (81,600) S 159,210 (81,600) Depreciation expense Gain on sale of plant assets 82,800 (2,400) $ 698,000 415,000 283,000 Changes in current operating assets and liabilities 71,000 Increase in accounts receivable (10,000) 62,600 149,400 Decrease in inventory 0 24,700 2,400 151,800 44,290 $ 107,510 Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable (7,000) - Cash balance at prior year-end (9,400) -> Cash balance at current year-end Net increase (decrease) in cash S 0 97,610 S 97,010 0 (800)