Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 IThe following information applies to the questions displayed below. The following financial statements and additional information are reported. IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2816 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 99,10e 86, 600 77,800 5, 880 268,700 138, e00 58, 000 65, 009 107,500 8, 200 238, 780 129, e00 (34,000) (16,000) $372, 700 $351,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities $ 39, 000 7,400 4, 800 51, 200 44, 000 95, 206 $ 51,000 17, 800 6, 680 75, 486 74, e00 149, 400 Prey !of 1 Next Total current 1iabiiities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 51,280 44,000 95, 200 75, 480 74, 000 149, 400 248 , 000 29, 580 $372, 700 174,000 28, 300 $351,780 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $748, 006 425, 000 323, 600 Depreciation expense $72, 600 81,000 Other expenses Total operating expenses 153,600 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3, 400 172,86 45, 290 $127,510 Prey 1 of 1 Next 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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. ercise 12-11 Part 1 quired: Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Ame indicated with a minus sign.) IKIBAN, INC. Required information KIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Required information 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