The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Equipment Accumulated depreciation-Equipment 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 2021 2020 $ 103,300 75,500 $ 51,000 58,000 70,800 97,000 5,100 6,800 254,700 212,800 131,000 (30,500) $ 355,200 $ 32,000 6,700 122,000 (12,500) $ 322,300 $ 40,500 16,400 5,200 4,100 42,800 62,100 37,000 67,000 79,800 129,100 234,000 167,000 41,400 $ 355,200 26,200 $ 322,300 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses). Gain on sale of equipment Income before taxes: Income taxes expense Net income Additional Information $ 713,000 418,000 295,000 74,000 65,600 155,400 2,700 158,100 44,590 $ 113,510 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,70 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. Required: (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. Required information. Cash flows from operating activities IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 0 Cash flows from investing activities Cash flows from investing activities $ 0 Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0 0 $ 0 $ 0