The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014

2015

2014

Assets

Cash

$

104,400

$

65,500

Accounts receivable, net

69,100

51,900

Inventory

65,900

96,700

Prepaid expenses

4,500

6,300

Total current assets

243,900

220,400

Equipment

133,200

118,000

Accum. depreciationEquipment

(28,100

)

(10,900

)

Total assets

$

349,000

$

327,500

Liabilities and Equity

Accounts payable

$

26,600

$

32,200

Wages payable

7,000

16,600

Income taxes payable

2,700

4,100

Total current liabilities

36,300

52,900

Notes payable (long term)

50,000

79,000

Total liabilities

86,300

131,900

Equity

Common stock, $5 par value

238,000

188,000

Retained earnings

24,700

7,600

Total liabilities and equity

$

349,000

$

327,500

IKIBAN INC. Income Statement For Year Ended June 30, 2015

Sales

$

673,000

Cost of goods sold

403,000

Gross profit

270,000

Operating expenses

Depreciation expense

$

52,500

Other expenses

66,900

Total operating expenses

119,400

150,600

Other gains (losses)

Gain on sale of equipment

2,700

Income before taxes

153,300

Income taxes expense

61,320

Net income

$

91,980

Additional Information

a.	A $29,000 note payable is retired at its $29,000 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 $64,200 cash.
d.	Received cash for the sale of equipment that had cost $49,000, yielding a $2,700 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 for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)