Refer to the information in Exercise 12-10.
Exercise 12-10

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 $57,600 cash.
d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.
e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f. All purchases and sales of merchandise inventory are on credit.
Using the direct method, prepare the statement of cash flows for the year ended June 30, 2013.

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IKIBAN INC. Income Statement For Year Ended June 30, 2013 Sales .... $678,000 Cost of goods sold Gross profit.. Operating expenses Depreciation expense ... Other expenses ... Total operating expenses .. 411,000 267,000 $58,600 67,000 125,600 141,400 Other gains (losses) Gain on sale of equipment 2,000 Income before taxes 143,400 Income taxes expense 43,890 ..... $ 99.510 Net income IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012 2013 2012 Assets Cash $ 87,500 $ 44,000 Accounts recelvable, net 65,000 51,000 Inventory Prepaid expenses Equipment . Accum. depreciation-Equipment 63,800 86,500 4,400 5,400 124,000 (27.000) $317,700 115,000 (9.000) $292,900 Total assets Liabilities and Equity Accounts payable Wages payable .. $ 25,000 $ 30,000 6,000 15,000 Income taxes payable .. 3,400 3,800 Notes payable (long term) 30.000 60,000 Common stock, $5 par value 220,000 160,000 Retained earnings.... Total liabilities and equity 33.300 24.100 $292.900 $317,700