The following financial statements and additional information are reported.

IKIBAN INCORPORATED

Comparative Balance Sheets

At June $3020212020$

Assets

Cash $ $103,900$ $ $50,000$

Accounts receivable, net $74,00057,000$

Inventory $69,80095,500$

Prepaid expenses $5,0006,600$

Total current assets $252,700209,100$

Equipment $130,000121,000$

Accumulated depreciation$$Equipment $(30,000)(12,000)$

Total assets $ $352,700$ $ $318,100$

Liabilities and Equity

Accounts payable $ $31,000$ $ $39,000$

Wages payable $6,60016,200$

Income taxes payable $4,0005,000$

Total current liabilities $41,60060,200$

Notes payable $($long term$)36,00066,000$

Total liabilities $77,600126,200$

Equity

Common stock, $$5$ par value $232,000166,000$

Retained earnings $43,10025,900$

Total liabilities and equity $ $352,700$ $ $318,100$

IKIBAN INCORPORATED

Income Statement

For Year Ended June $30,2021$

Sales $ $708,000$

Cost of goods sold $417,000$

Gross profit $291,000$

Operating expenses $($excluding depreciation$)73,000$

Depreciation expense $64,600$

$153,400$

Other gains $($losses$)$

Gain on sale of equipment $2,600$

Income before taxes $156,000$

Income taxes expense $44,490$

Net income $ $111,510$

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 $$63,600$ cash.

Received cash for the sale of equipment that had cost $$54,600,$ yielding a $$2,600$ 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 $30,2021.$

Note: Amounts to be deducted should be indicated with a minus sign