h 12 Homework Required Information 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 $ 96,700 $ 62,000 Accounts receivable, net 92,eee 69,000 Inventory 81,800 113,500 Prepaid expenses 6,200 9, eee Total current assets 276,700 253,500 Equipment 142,eee 133,000 Accum. depreciation Equipment 36.000 (18.090) Total assets $382,700 5368,500 Liabilities and Equity Accounts payable $ 43,000 $ 57,000 Wages payable 7,80 18,600 Income taxes payable 5,200 Total current liabilities 56,000 Notes payable (long ters) 48,eae 78,000 Total liabilities 104,000 161,000 Equity Common stock, $5 par value 256,000 178,000 Retained earnings 22,79 29,500 Total liabilities and equity $382,7095368,500 2.400 83,000 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales 5768,000 Cost of goods sold 429,000 Gross profit 339,000 Operating expenses Depreciation expense $76,600 Other expenses 85,000 Total operating expenses 161,600 177,400 Other gains (losses) Gain on sale of equipment 3.500 Income before taxes 181,200 Income taxes expense 45,690 Net income $135,510 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 earrings are net income and cash dividends paid. c. New equipment is acquired for $75.600 cash d. Received cash for the sale of equipment that had cost $66.600. yielding a $1800 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 1. All purchases and sales of inventory are on credit Required: 1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method (Amounts to be deducted should be Indicated with a minus sign.) IKIBAN, 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 Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end