(Solved): The following financial statements and additional information are reported. IKIBAN INCORPORATED Com ...

The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities \begin{tabular}{rr} \( \$ 87,500 \) & \( \$ 44,000 \) \\ 65,000 & 51,000 \\ 63,800 & 86,500 \\ 4,400 & 5,400 \\ \hline 220,700 & 186,900 \\ 124,000 & 115,000 \\ \( (27,000) \) & \( (9,000) \) \\ \hline\( \$ 317,700 \) & \( \$ 292,900 \) \\ \hline \hline \end{tabular} Equity Common stock, \$5 par value Retained earnings Total liabilities and equity \begin{tabular}{rr} \( \$ 25,000 \) & \( \$ 30,000 \) \\ 6,000 & 15,000 \\ 3,400 & 3,800 \\ \hline 34,400 & 48,800 \\ 30,000 & 60,000 \\ \hline 64,400 & 108,800 \end{tabular} \begin{tabular}{rr} 220,000 & 160,000 \\ 33,300 & 24,100 \\ \hline\( \$ 317,700 \) & \( \$ 292,900 \) \\ \hline \hline \end{tabular} 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 \( \$ 57,600 \) 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 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. (Amounts to be deducted should be indicated with a minus sign.)