The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012
	2013			2012
Assets
Cash	$	110,300			$	68,900
Accounts receivable, net		70,000				51,800
Inventory		65,900				96,100
Prepaid expenses		6,100				4,700
Equipment		121,600				110,000
Accum. depreciationEquipment		(28,100	)			(10,100	)
Total assets	$	345,800			$	321,400
Liabilities and Equity
Accounts payable	$	26,700			$	32,100
Wages payable		8,000				17,000
Income taxes payable		2,300				3,600
Notes payable (long term)		47,000				72,000
Common stock, $5 par value		237,000				189,000
Retained earnings		24,800				7,700
Total liabilities and equity	$	345,800			$	321,400

IKIBAN INC. Income Statement For Year Ended June 30, 2013
Sales				$	673,000
Cost of goods sold					404,000
Gross profit					269,000
Operating expenses
Depreciation expense	$	57,800
Other expenses		66,700
Total operating expenses					124,500
					144,500
Other gains (losses)
Gain on sale of equipment					2,300
Income before taxes					146,800
Income taxes expense					58,720
Net income				$	88,080

Additional Information

a.	A $25,000 note payable is retired at its $25,000 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 $60,700 cash.
d.	Received cash for the sale of equipment that had cost $49,100, yielding a $2,300 gain.
e.	Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f.	All purchases and sales of merchandise inventory are on credit.

Required:
(1)	Prepare a statement of cash flows for the year ended June 30, 2013, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)