The following financial statements and additional information are reported.

IKIBAN INCORPORATED

Comparative Balance Sheets

At June $3020212020$

Assets

Cash $ $97,300$ $ $61,000$

Accounts receivable, net $90,50068,000$

Inventory $80,800112,000$

Prepaid expenses $6,1008,800$

Total current assets $274,700249,800$

Equipment $141,000132,000$

Accumulated depreciation$$Equipment $(35,500)(17,500)$

Total assets $ $380,200$ $ $364,300$

Liabilities and Equity

Accounts payable $ $42,000$ $ $55,500$

Wages payable $7,70018,400$

Income taxes payable $5,1007,200$

Total current liabilities $54,80081,100$

Notes payable $($long term$)47,00077,000$

Total liabilities $101,800158,100$

Equity

Common stock, $$5$ par value $254,000177,000$

Retained earnings $24,40029,200$

Total liabilities and equity $ $380,200$ $ $364,300$

IKIBAN INCORPORATED

Income Statement

For Year Ended June $30,2021$

Sales $ $763,000$

Cost of goods sold $428,000$

Gross profit $335,000$

Operating expenses $($excluding depreciation$)84,000$

Depreciation expense $75,600$

$175,400$

Other gains $($losses$)$

Gain on sale of equipment $3,700$

Income before taxes $179,100$

Income taxes expense $45,590$

Net income $ $133,510$

Additional Information

A $$30,000$ notes payable is retired at its $$30,000$ carrying $($book$)$ value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $$74,600$ cash.

Received cash for the sale of equipment that had cost $$65,600,$ yielding a $$3,700$ gain.

Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

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 $30,2021.$