The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019				2018
Assets
Cash	$	77,900			$	60,000
Accounts receivable, net		89,000				67,000
Inventory		79,800				110,500
Prepaid expenses		6,000				8,600
Total current assets		252,700				246,100
Equipment		140,000				131,000
Accum. depreciationEquipment		(35,000	)			(17,000	)
Total assets	$	357,700			$	360,100
Liabilities and Equity
Accounts payable	$	41,000			$	54,000
Wages payable		7,600				18,200
Income taxes payable		5,000				7,000
Total current liabilities		53,600				79,200
Notes payable (long term)		33,200				76,000
Total liabilities		86,800				155,200
Equity
Common stock, $5 par value		252,000				176,000
Retained earnings		18,900				28,900
Total liabilities and equity	$	357,700			$	360,100

IKIBAN INC. Income Statement For Year Ended June 30, 2019
Sales				$	758,000
Cost of goods sold					427,000
Gross profit					331,000
Operating expenses
Depreciation expense	$	74,600
Other expenses		83,000
Total operating expenses					157,600
					173,400
Other gains (losses)
Gain on sale of equipment					3,600
Income before taxes					177,000
Income taxes expense					45,490
Net income				$	131,510

Additional Information

1. A $42,800 note payable is retired at its $42,800 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $73,600 cash.
4. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. 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, 2017 Cash flows from operating activities Cash received from customers Cash paid for operating expenses Cash paid for income taxes Cash paid for inventory Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash paid for dividends Cash paid to retire notes Cash received from stock issuance Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end