The following financial statements and additional information are reported. IKIBAN INC. -Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 97,98 89, eee 79,800 6,000 272,700 149,800 (35,800 $377,780 $ 60,000 67,080 119,500 8.68e 246, 18e 131.ee (17888) $360,180 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Actum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long ters) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 41,090 7.688 5.080 53.600 46, Bae 99,500 $ 54, eee 18,288 7,888 79.288 76,888 155,200 252,00 26,18 $377,780 176,888 2 8,982 $360,100 IKIBAN INC. Income Statement For Year Ended June 3e, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $74,600 Other expenses 83, eee Total operating expenses $758,888 427,888 331,080 157. see 173.480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3.68 177.000 $131.516 Additional Information a. 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 $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 1. 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 019 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 Net increase (decrease in cash Cash balance at prior year and Cash balance at current year end The following financial statements and additional information are reported IKIBAN INC. Comparative Balance Sheets June 3, 2019 and 2018 2019 2018 $ 79,100 86, Bee 77.8ee S. 248,788 138. 34.000 $352,700 $ 58, 65,eee 187. See 8,200 238, 7ee 129,82 (16,000) $351.28 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, 55 per value Retained earnings Total liabilities and equity $ 39,bee 7,40 4. Bee 51.28 $51, see 17.ee 6.60e 75, see 74,6e 149,400 20,7ee $352,780 174.ee 28,300 $351,700 TICININ Income Statement For Year Ended June , 2019 Cost of poods sold Gross profit 323, Depreciation expense 572,600 1. 153,60e 169,480 172, 5127,51e Additional Information AS41200 note payable is retired at its 541200 carrying book value in exchange for cash b. The only changes flecting retained earnings are net income and cash dividends paid New equipment is scored for $71600 cash. Received cash for the sale of equipment that had cost $62.600 vieiding a $3.400 gain Prepaid Expenses and Wages Payable relate to other Expenses on the income statement Al purchases and sales of inventory are on credit une durect method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign) Tyn Additional Information a. A $41200 note payable is retired at its $41.200 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62.600. yielding a $3.400 gain. e. Prepaid Expenses and Wages Payable relate to Other 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, 2019. (Amounts to be deducted should be Indicated with a minus sign.) IKIBAN, INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash fows from operating activities