I he tollowing tinancial statements and additional intormation are reported Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 AssetS Cash Accounts receivable, net $ 87,500 44,000 65,000 63, 800 51,000 86,500 Inventory Prepaid expenses 5, 400 220,700 186,900 4, 400 Total current assets Equipment 124,000 115,000 Accum. depreciation-Equipment (27,000)(9,000 $317,700 $292,900 Total assets 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 Total liabilities and equity s 25,000 30,000 6,000 15,000 3,800 48, 800 60,000 64,400 108,800 3, 400 34,400 30,000 220,000 160,000 24,100 $317,700 $292,900 33,300 IKIBAN INC. Income Statement For Year Ensied June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $678,000 411,000 267,000 Depreciation expense s59,600 Other expenses 67,000 Total operating expenses 125,600 141,400 other gains (losses) Gain on sale of equipment 2,000 Income before taxes K Pre : Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income 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 0 l Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end e to search Notes payable (long term) Total liabilities Equity Common stock, S5 par value Retained earnings Total liabilities and equity 30,000 60 64,400 108, 220, 000 160, 24, $317,700 $292, 33, 300 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $678,000 411,000 267,000 Depreciation expense $58,600 Other expenses 67,000 Total operating expenses 125, 600 141,400 Other gains (losses) Gain on sale of 2,000 143, 400 43, 890 s 99, 510 equipment Income before taxes Income taxes expense Net income Additional Information a. A $30,000 note payable is retired at its $30.000 carrying (book) val b. The only changes affecting retained earnings are net income and ca c. New equipment is acquired for $57.600 cash d. Received cash for the sale of equipment that had cost $48,600, yiela e. Prepaid Expenses and Wages Payable relate to Other Expenses on th f. 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 t be indicated with a minus sign.) 2 Homework Other expenses Total operating expenses 67,000 125, 600 141,400 Other gains (losses) Gain on sale of 2,000 143,400 43,890 s 99,510 equipment Income before taxes Income taxes expense Net income Additional Information a. A$30,000 note payable is retired at its $30,000 carrying (book) value in exchange f b. The only changes affecting retained earnings are net income and cash dividends pa c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48.600. yielding a $2.000 g e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income state f. All purchases and sales of inventory are on credit (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017 Cash Flow on Total Assets Ratio Choose Denominator:Cash Flow on Total Assets Numerator: Cash flow on total assets ratio Prev to search Homework e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income st f. All purchases and sales of invenitory are on credit Using the direct method, prepare the statement of cash flows for the year ended June 30 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 flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end