GL1201- Based on Exercise 12-11 LO P1, P2, P3, A1 Use the following financial statements and additional information. LAPAYETTE 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 $ 90,400 $ 31,100 57,000 88,000 6,700 231,800 182,800 73,000 63,000 5,400 166,000 154,000 $355, 800 $322,800 s 26,000 32,000 (42,000) (14,000) 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 7,000 18,000 4,800 37,3008d H 354,800 33,000 70,300 65,000 119,800 240,000170,000 45,50033,000 $355,800 $322, 800 LAFAYETTE INC. Income Statement Por Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $869,000 531,000 338,000 Depreciation cxpense $72,000 Prev 1 of 1 LAFAYETTE INC Income Statement For Year Ended Tu 30 2017 Sales Cost of goods sold Gross profit $869,000 531,000 338,000 rating expenses Depreciation expense $72, 000 85,000 Other expenses Total operating expenses 157,000 181,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,100 185,100 56, 660 $128,440 Additional Information a. A $33,000 note payable is retired at its $33,000 carrying (book) value in b. The only changes affecting retained earnings are net income and cash di c. New equipment is acquired for $71,000 cash. d. Received cash for the sale of equipment that had cost $59,00o, yieldibga e. Prepaid Expenses and Wages Payable relate to Other Expenses on the in f. All purchases and sales of inventory are on credit General Journal General Trial Balance Requirement nce Direct MethodIndir Indir Using the income statement, the comparative balance sheet, and the additional entries for the summarized activity of the current fiscal year. Upon com the June 30, 2017 balances. View transaction list Journal entry worksheet e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income sta f. All purchases and sales of Inventory are on credit. General Requirement Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activitles section of the statement of cash flows using the reductions to net cash provided by operating activitles as negative values. Unadjusted LAFAYETTE 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: Prev 1 of 1 f. All purchases and sales of Inventory are on credit General LedgerT Indire Metho General RequirementJournal Trial Balance Direct Method Prepare the Statement of Cash flows for the year ended June 30, 2017 using account on the General Ledger tab to identify the sources and uses of ca values. Unadjusted LAFAYETTE 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