The following financlal statements and additional Information are reported.

IKIBAN INCORPORATED

Income statement

Additional Information

a$.$ A $$30,000$ notes payable is retired at its $$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 $$57,600$ cash.

d$.$ Recelved cash for the sale of equipment that had cost $$48,600,$ ylelding a $$2,000$ gain.

e$.$ Prepald Expenses and Wages Payable relate to Operating Expenses on the income statement.

f$.$ All purchases and sales of Inventory are on credit.

Requlred:

Prepare a statement of cash flows using the Indirect method for the current year ended June $30.$

Navigation: