[The following information applies to the questions displayed below.] The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019				2018
Assets
Cash	$	95,500			$	64,000
Accounts receivable, net		95,000				71,000
Inventory		83,800				116,500
Prepaid expenses		6,400				9,400
Total current assets		280,700				260,900
Equipment		144,000				135,000
Accum. depreciationEquipment		(37,000	)			(19,000	)
Total assets	$	387,700			$	376,900
Liabilities and Equity
Accounts payable	$	45,000			$	60,000
Wages payable		8,000				19,000
Income taxes payable		5,400				7,800
Total current liabilities		58,400				86,800
Notes payable (long term)		50,000				80,000
Total liabilities		108,400				166,800
Equity
Common stock, $5 par value		260,000				180,000
Retained earnings		19,300				30,100
Total liabilities and equity	$	387,700			$	376,900

IKIBAN INC. Income Statement For Year Ended June 30, 2019
Sales				$	778,000
Cost of goods sold					431,000
Gross profit					347,000
Operating expenses
Depreciation expense	$	78,600
Other expenses		87,000
Total operating expenses					165,600
					181,400
Other gains (losses)
Gain on sale of equipment					4,000
Income before taxes					185,400
Income taxes expense					45,890
Net income				$	139,510

Additional Information

1. A $30,000 note payable is retired at its $30,000 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 $77,600 cash.
4. Received cash for the sale of equipment that had cost $68,600, yielding a $4,000 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.

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.)