2016 IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $ 95,500 Accounts receivable, net 95,000 Inventory 83,800 Prepaid expenses 6,400 Total current assets 280,700 Equipment 144,000 Accum. depreciation-Equipment (37,000) Total assets $387,700 Liabilities and Equity Accounts payable $ 45,000 Wages payable 8,000 Income taxes payable 5,400 Total current liabilities 58,400 Notes payable (long term) 50,000 Total liabilities 108,400 Equity Common stock, $5 par value 260,000 Retained earnings 19,300 Total liabilities and equity $387,700 $ 64,000 71,000 116,500 9,400 260, 900 135,000 (19,000) $376,900 $ 60,000 19,000 7,800 86,800 80,000 166,800 180,000 30, 100 $376,900 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $78,600 Other expenses 87,000 Total operating expenses $778,000 431,000 347,000 165,600 181,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,000 185,400 45,890 $139,510 Additional Information a. A $30,000 note 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 $77,600 cash. d. Received cash for the sale of equipment that had cost $68,600. yielding a $4,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017, Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end