Exercise 16-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1

[The 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 2016
	2017				2016
Assets
Cash	$	101,500			$	54,000
Accounts receivable, net		80,000				61,000
Inventory		73,800				101,500
Prepaid expenses		5,400				7,400
Total current assets		260,700				223,900
Equipment		134,000				125,000
Accum. depreciationEquipment		(32,000	)			(14,000	)
Total assets	$	362,700			$	334,900
Liabilities and Equity
Accounts payable	$	35,000			$	45,000
Wages payable		7,000				17,000
Income taxes payable		4,400				5,800
Total current liabilities		46,400				67,800
Notes payable (long term)		40,000				70,000
Total liabilities		86,400				137,800
Equity
Common stock, $5 par value		240,000				170,000
Retained earnings		36,300				27,100
Total liabilities and equity	$	362,700			$	334,900

The following financial statements and additional information are reported 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 Liabilities and Equity Accounts payable Wages payable Income taxes payable $101,500 54,000 61,000 101,500 5,400 7,400 260,700 223,900 125,000 80,000 73,800 134,000 (32,000) (14,000) $362,700 $334,900 $ 35,000 45,000 17,000 4,4005,800 67,800 70,000 137,800 7,000 Total current liabilities 46,400 Notes payable (long term) 40,000 86,400 Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 170,000 240,000 36,300 27,100 $362,700 $334,900 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $728,000 421,000 307,000 Depreciation expense Other expenses $68,600 77,000 Total operating expenses 145,600 161,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,000 164,400 44,890 $119,510