Additional Information

1. A $30,000 note 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 $60,600 cash.
4. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. 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.)

i ne Tollowing financial statements and additional information are reportea. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 $ 85,780 69,500 66,800 4,700 226,700 127,000 (28,500 $325, 2ee $ 47,000 54,800 91,000 6,000 198,00 118,000 (10,500) $305,500 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 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 Total liabilities and equity $ 28,000 6,300 3,700 38,800 33,000 71,000 $ 34,500 15,600 4,400 54,500 63,000 117,500 226,000 28,200 $325,200 163,000 25,000 $385,500 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $61,600 Other expenses 70,000 Total operating expenses $693,000 414,000 279,000 131,680 147,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,300 149,700 44,190 $125,518