Additional Information

A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $79,600 cash. Received cash for the sale of equipment that had cost $70,600, yielding a $4,200 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit.

Required:

(1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 94,300 98,000 85,800 6,600 284,700 146,000 66,000 73,000 119,500 9,800 268,300 137,000 38,000)(20,000) $392,700 $385,300 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings 47,000 8,200 5,600 60,800 63,000 19,400 8,200 90,600 52,00082-00 12,.800 172,600 264,000 15,900 182,000 30,700 Total liabilities and equity $392,700 $385,300 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit $788,000 433,000 355,000 Operating expenses Depreciation expense $80,600 89,000 Other expenses Total operating expenses 169,600 185,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,200 189,600 46,090 $143,510