[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 $ 94,300 98,000 85,800 6,600 284,700 146,000 (38,000) $392,700 $ 66,000 73,000 119,500 9,800 268,300 137,000 (20,000) $385,300 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 $ 47,000 8,200 5,600 60,800 52,000 112,800 $ 63,000 19,400 8,200 90,600 82,000 172,600 264,000 15,900 $392,700 182,000 30,700 $385,300 $788,000 433,000 355,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $80,600 other expenses 89.000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 169,600 185,400 4,200 189,600 46,090 $143,510 Additional Information 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 $79.600 cash. d. Received cash for the sale of equipment that had cost $70,600 yielding a $4,200 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. Exercise 12-11 Part 1 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.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Required information IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30.2019 Cash flows from operating activities Net income 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 $ 0 Cash flows from investing activities Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0