Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 3et3 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum depreciation-Equipment Total assets $ 97,900 89,000 79,800 6,000 272, 700 140,000 (35,000) 60,000 67,000 110,500 8,600 246,100 131,000 (17,000) S377,700 $360,100 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 S 41,000 7,600 5,000 53, 600 46, 000 99,600 54,000 18,200 7,000 79,200 76,000 155,200 176,000 28,900 $377,700 $360,100 252,000 26,100 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $758,000 427,000 331,000 Depreciation expense Other expenses $74,600 83,000 157,600 173, 400 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,600 177,000 45,490 $131,510 Additional Informationn 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 $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 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. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities S 131,510 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets 74,600 (3,600) Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable (22,000) 30,700 2,600 (13,000) (10,600) (2,000) prepaid expenses Net cash provided by operating activities Cash flows from investing activities 188,210 Cash received from sale of equipment Cash paid for equipment (73,600) (73,600) Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends (30,000) Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end (30,000) 84,610 84,610