Required information [The following information applies to thequestions displayed below.] The following financial statements andadditional information are reported. IKIBAN INC. ComparativeBalance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $96,700 $ 62,000 Accounts receivable, net 92,000 69,000 Inventory81,800 113,500 Prepaid expenses 6,200 9,000 Total current assets276,700 253,500 Equipment 142,000 133,000 Accum.depreciation—Equipment (36,000 ) (18,000 ) Total assets $ 382,700 $368,500 Liabilities and Equity Accounts payable $ 43,000 $ 57,000Wages payable 7,800 18,600 Income taxes payable 5,200 7,400 Totalcurrent liabilities 56,000 83,000 Notes payable (long term) 48,00078,000 Total liabilities 104,000 161,000 Equity Common stock, $5par value 256,000 178,000 Retained earnings 22,700 29,500 Totalliabilities and equity $ 382,700 $ 368,500 IKIBAN INC. IncomeStatement For Year Ended June 30, 2019 Sales $ 768,000 Cost ofgoods sold 429,000 Gross profit 339,000 Operating expensesDepreciation expense $ 76,600 Other expenses 85,000 Total operatingexpenses 161,600 177,400 Other gains (losses) Gain on sale ofequipment 3,800 Income before taxes 181,200 Income taxes expense45,690 Net income $ 135,510 Additional Information A $30,000 notepayable is retired at its $30,000 carrying (book) value in exchangefor cash. The only changes affecting retained earnings are netincome 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 Payablerelate to Other Expenses on the income statement. All purchases andsales of inventory are on credit.
Required:
(1) Prepare a statement of cash flows using theindirect method for the year ended June 30, 2019.(Amounts to be deducted should be indicated with a minussign.)
