DELRAY 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 $. 84,200 70,000 71,000 5,300 230,500 163,000 42,000 47,000 55,000 98,000 6,600 206,600 151,000 14,000 $351,500 343,600 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total 1iabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 34,000 42,000 17,000 4,600 63,600 90,000 153,600 7,000 4,100 45,100 90,100 160,000 30,000 $351,500$343,600 220,000 41,400 DELRAY INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $852,000 521,000 331,00e Depreciation expense $71,000 83,000 Other expenses Total operating expenses 154,000 177,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,900 180,900 55,370 $125,530 Additional Information a. A $45,000 note payable is retired at its $45,000 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 $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000, yielding a $3,900 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. Unadjusted DELRAY 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: Unadjusted DELRAY INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities: Adjustmentsto econcile net income to net cash provided by operating actvities