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The following financial statements and additional information are reported IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 101,000 87,800 $ 68,000

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The following financial statements and additional information are reported IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 101,000 87,800 $ 68,000 75,000 122,500 10. 200 275,700 139,000 (2 288,700 148,000 39,000) Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. 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, 35 par value Retained earnings Total liabilities and equity 19.000 8.400 0 63,200 $ 66,000 19,500 .000 94,400 117,200 178,400 268,000 184,000 $397.700 5393,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 502,600 Other expenses 91,200 Total operating expenses 5798,000 05.000 363,000 173.600 Net income $147,510 Additional Information 2. A $30,000 note 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 $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600. yielding a $4,400 gain. e. Prepaid Expenses and Wages Payable relate to Other 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, 2019. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities 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 Required information Statement of Cash Flows (indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities 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 Cash flows from investing activities Cash flows from financing activities

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