$[$The following information applies to the questions displayed below.$]$

The following financial statements and additional information are reported.

IKIBAN INCORPORATED

Comparative Balance Sheets

At June $3020212020$

Assets

Cash $ $96,700$ $ $62,000$

Accounts receivable, net $92,00069,000$

Inventory $81,800113,500$

Prepaid expenses $6,2009,000$

Total current assets $276,700253,500$

Equipment $142,000133,000$

Accumulated depreciation$$Equipment $(36,000)(18,000)$

Total assets $ $382,700$ $ $368,500$

Liabilities and Equity

Accounts payable $ $43,000$ $ $57,000$

Wages payable $7,80018,600$

Income taxes payable $5,2007,400$

Total current liabilities $56,00083,000$

Notes payable $($long term$)48,00078,000$

Total liabilities $104,000161,000$

Equity

Common stock, $$5$ par value $256,000178,000$

Retained earnings $22,70029,500$

Total liabilities and equity $ $382,700$ $ $368,500$

IKIBAN INCORPORATED

Income Statement

For Year Ended June $30,2021$

Sales $ $768,000$

Cost of goods sold $429,000$

Gross profit $339,000$

Operating expenses $($excluding depreciation$)85,000$

Depreciation expense $76,600$

$177,400$

Other gains $($losses$)$

Gain on sale of equipment $3,800$

Income before taxes $181,200$

Income taxes expense $45,690$

Net income $ $135,510$

Additional Information

A $$30,000$ notes payable is retired at its $$30,000$ 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 $$75,600$ cash.

Received cash for the sale of equipment that had cost $$66,600,$ yielding a $$3,800$ gain.

Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

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 $30,2021.$

Note: Amounts to be deducted should be indicated with a minus sign.