The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 83,900 $ 50,000 Accounts receivable, net 74,000 57,000 Inventory 69,800 95,500 Prepaid expenses 5,000 6,600 Total current assets 232,700 209,100 Equipment 130,000 121,000 Accumulated depreciationEquipment (30,000) (12,000) Total assets $ 332,700 $ 318,100 Liabilities and Equity Accounts payable $ 31,000 $ 39,000 Wages payable 6,600 16,200 Income taxes payable 4,000 5,000 Total current liabilities 41,600 60,200 Notes payable (long term) 31,200 66,000 Total liabilities 72,800 126,200 Equity Common stock, $5 par value 232,000 166,000 Retained earnings 27,900 25,900 Total liabilities and equity $ 332,700 $ 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 $34,800 note payable is retired at its $34,800 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. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.)

Statement of cash flows (Direct method)