[The following information applies to the questions displayed below.]

The following financial statements and additional information are reported.

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30	2021	2020
Assets
Cash	$ 97,900	$ 60,000
Accounts receivable, net	89,000	67,000
Inventory	79,800	110,500
Prepaid expenses	6,000	8,600
Total current assets	272,700	246,100
Equipment	140,000	131,000
Accumulated depreciationEquipment	(35,000)	(17,000)
Total assets	$ 377,700	$ 360,100
Liabilities and Equity
Accounts payable	$ 41,000	$ 54,000
Wages payable	7,600	18,200
Income taxes payable	5,000	7,000
Total current liabilities	53,600	79,200
Notes payable (long term)	46,000	76,000
Total liabilities	99,600	155,200
Equity
Common stock, $5 par value	252,000	176,000
Retained earnings	26,100	28,900
Total liabilities and equity	$ 377,700	$ 360,100

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales	$ 758,000
Cost of goods sold	427,000
Gross profit	331,000
Operating expenses (excluding depreciation)	83,000
Depreciation expense	74,600
	173,400
Other gains (losses)
Gain on sale of equipment	3,600
Income before taxes	177,000
Income taxes expense	45,490
Net income	$ 131,510

Additional Information

1. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $73,600 cash.
4. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 gain.
5. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
6. 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.