IKIBAN INCORPORATED

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 $$72,600$ cash.

d$.$ Received cash for the sale of equipment that had cost $$63,600,$ yielding a $$3,500$ 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.

Exercise $16-12($Algo$)$ Part $1$

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.

IKIBAN, INCORPORATED

Statement of Cash Flows $($Indirect Method$)$

For Year Ended June $30,2021$

Cash flows from operating activities

Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash