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 $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. 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. \begin{tabular}{lrr} \multicolumn{3}{c}{ IKIBAN INCORPORATED } \\ \multicolumn{1}{c}{ Comparative Balance } \\ At June 30 & 2021 & \\ Assets & & \\ Cash & 93,100 & $68,000 \\ Accounts receivable, net & 101,000 & 75,000 \\ Inventory & 87,800 & 122,500 \\ Prepaid expenses & 6,800 & 10,200 \\ Total current assets & 288,700 & 275,700 \\ Equipment & 148,000 & 139,000 \\ Accumulated depreciation-Equipment & (39,000) & (21,000) \\ Total assets & $397,700 & $393,700 \\ Liabilities and Equity & & \\ Accounts payable & 49,000 & $66,000 \\ Wages payable & 8,400 & 19,800 \\ Income taxes payable & 5,800 & 8,600 \\ Total current liabilities & 63,200 & 94,400 \\ Notes payable (long term) & 54,000 & 84,000 \\ Total liabilities & 117,200 & 178,400 \\ Equity & 268,000 & 184,000 \\ Common stock, $5 par value & 12,500 & 31,300 \\ Retained earnings & $397,700 & $393,700 \\ Total liabilities and equity & & \end{tabular} IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 \begin{tabular}{lr} Sales & $798,000 \\ Cost of goods sold & 435,000 \\ Gross profit & 363,000 \\ Operating expenses (excluding depreciation) & 91,000 \\ Depreciation expense & 82,600 \\ Other gains ( losses) & 189,400 \\ Gain on sale of equipment & 4,400 \\ Income before taxes & 193,800 \\ Income taxes expense & 46,290 \\ Net income & $147,510 \\ \hline \end{tabular}