IKIBAN INCORPORATED

$\backslash$table$[[,$Comparative Balance Sheets,$],[$At June $30,2021,2020,,],[$Assets$,,,,],[$Cash$,96,100,$$$63,000,,],[$Accounts receivable, net,$93,500,70,000,,],[$Inventory$,82,800,115,000,,],[$Prepaid expenses,$6,300,9,200,,],[$Total current assets,$278,700,257,200,,],[$Equipment$,143,000,134,000,,],[$Accumulated depreciation$-$Equipment,$(36,500),(18,500),,],[$assets$,$$$385,200,$$$372,700,,],[$Liabilities and Equity,,,,$],[$Accounts payable,$$44,000,$$$58,500,,],[$Wages payable,$7,900,18,800,,],[$Income taxes payable,$5,300,7,600,,],[$Total current liabilities,$57,200,84,900,,],[$Notes payable $($long term$),49,000,79,000,,],[$Total liabilities,$106,200,163,900,,],[$Equity$,,,,],[$Common stock, $$5$ par value,$258,000,179,000,,],[$Retained earnings,$21,000,29,800,,],[$Total liabilities and equity,$$385,200,$$$372,700,,]]$

IKIBAN INCORPORATED

Income Statement

$\backslash$table$[[$Sales$,$$$773,000$

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 $$76,600$ cash.

d$.$ Received cash for the sale of equipment that had cost $$67,600,$ yielding a $$3,900$ 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 $12-12($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.