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. 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inveritory are on credit. Required information \begin{tabular}{|l|l|l|} & & \\ \hline Cash flows from investing activities & & \\ \hline Cash received from sale of equipment & & \\ \hline Cash paid for equipment & & \\ \hline & & \\ \hline Cash flows from financing activities & & \\ \hline Cash paid for dividends & & \\ \hline Cash paid to retire notes & & \\ \hline Cash received from stock issuance & & \\ \hline & & \\ \hline Net increase (decrease) in cash & & \\ \hline Cash balance at prior year-end & & \\ \hline Cash balance at current year-end & & 190,910 \\ \hline \end{tabular} Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported \begin{tabular}{lrr} Accounts payable & $37,000 & $48,000 \\ Wages payable & 7,200 & 17,400 \\ Income taxes payable & 4,600 & 6,200 \\ Total current liabilities & 48,800 & 71,600 \\ Notes payable (long term) & 42,000 & 72,000 \\ Total liabilities & 90,800 & 143,600 \\ Equity & & \\ Common stock, \$5 par value & 244,000 & 172,000 \\ Retained earnings & 32,900 & 27,700 \\ Total liabilities and equity & $367,700 & $343,300 \\ \hline \hline \end{tabular} IKIBAN INCORPORATED Income statement Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income For Year Ended June 30, 2021 $738,000423,000315,00079,00070,600165,4003,200168,60045,090$123,510