The following financial statements and additional information are reported IKIRAN INC. Comparative Balance Sheets June 30, 2019 and 2010 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, $5 par value Retained earnings Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2019 2019 2018 $102,100 $ 53,000 78,500 60,000 72,800 100,000 5,300 7,200 258,700 220,200 133,000 124,000 (31,500) $360,200 (13,500) $330,700 4,300 $ 34,000 6,900 $ 43,500 16,800 5,600 45,200 65,900 39,000 69,000 64,200 134,900 238,000 169,000 35,000 26,800 $360, 200 $330,700 Sales $723,000 Cost of goods sold 420,000 Gross profit 303,000 Operating expenses Depreciation expense $67,600 Other expenses 76,000 Total operating expenses 143,600 159,400 Other gains (losses) Gain on sale of equipment 2,900 Income before taxes Income taxes expense Net income 162,300 44,790 $117,510 Net income $117,510 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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 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