HOW DO YOU DO THIS FOR DIRECT METHOD I ONLY SEE POST ABOUT INDIRECT METHOD (IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 103,300 $ 51,000 Accounts receivable, net 75,500 58,000 Inventory 70,800 97,000 Prepaid expenses 5,100 6,800 Total current assets 254,700 212,800 Equipment 131,000 122,000 Accum. depreciationEquipment (30,500 ) (12,500 ) Total assets $ 355,200 $ 322,300 Liabilities and Equity Accounts payable $ 32,000 $ 40,500 Wages payable 6,700 16,400 Income taxes payable 4,100 5,200 Total current liabilities 42,800 62,100 Notes payable (long term) 37,000 67,000 Total liabilities 79,800 129,100 Equity Common stock, $5 par value 234,000 167,000 Retained earnings 41,400 26,200 Total liabilities and equity $ 355,200 $ 322,300 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $ 713,000 Cost of goods sold 418,000 Gross profit 295,000 Operating expenses Depreciation expense $ 65,600 Other expenses 74,000 Total operating expenses 139,600 155,400 Other gains (losses) Gain on sale of equipment 2,700 Income before taxes 158,100 Income taxes expense 44,590 Net income $ 113,510 Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $64,600 cash. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. rev: 12_05_2017_QC_CS-111198 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.))

Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end