he 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 $102,70052,000 77,000 71,800 5,200 59,000 98,500 7,000 256,700216,500 123,000 (31,000)(13,000) $357,700 $326,500 132,000 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, S5 par value Retained earnings $ 33,000 42,000 16,600 5, 400 6,800 4,200 44,000 640 38,000 82,000 68,000 132,000 236,000 39,700 168,000 26,500 Total Habilities and equity $357 70$326,52 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $718,00e 419,000 299,860 Depreciation expense $66,680 75,000 other expenses Total operating expenses 141,600 157,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,800 160,200 44,690 $115,510 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 earnings are net income and cash dividends paid. c. New equipment is acquired for $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 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. Required: (t1) 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.) 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 tems not affecting cash Changes in current operating assets and iabilities 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