otels 12. 162 The following financial statements and additional Information are reported. IKT AN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2013 $ 99, 100 86,800 77,8ee 5,880 268,7ee 138, eee (34,eee) $372,700 $ 58,eee 65,000 107,5ee 8,2ee 238,700 129,800 (16,080) $351,700 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accun. depreciation Equipment Total assets Liabilities and Equity Accounts payable Hoges payable Income taxes payable Total current liabilities Notes payable (long term) Total Habilities Equity Common stock, 55 par value Retained earnings Total liabilities and equity $ 39,000 7,40e 4,000 51,200 44,000 95,200 $ 51, Bee 17,880 6,6ee 75,400 74,80 149,400 248,00 29,500 $372,700 174,00 28,300 $351,700 5748, ebe 425, eee 323,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $72,600 other expenses 81,000 Total operating expenses other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net incone 153,60 169,480 2.400 172,800 45,290 $127,510 Additional Information .. 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 pald c. New equipment is acquired for $71,600 cash d. Received cash for the sale of equipment that had cost $62.600, yielding a $3,400 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: 21 - Chapters 12.1&2 i 25 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be be indicated with a minus sign.) 011319 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 Book 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