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Required: eBook (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.) Hint IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Ask Cash flows from operating activities Adjustments to reconcile net income to net cash provided by Print operating activities Income statement items not affecting cash Reference Changes in current operating assets and liabilities $ 0 Cash flows from investing activities 0 Cash flows from financing activities Net increase (decrease) in cash O $ 0 Cash balance at prior year-end Cash balance at current year-end $ 0Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1. P2. P3. A1 [The following infomation 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 2015 Assets Cash $ 9?,300 $ 61,000 Accounts receivable, net 90,500 68,000 Inventory 80,800 112,000 Prepaid expenses 6,100 8,800 Total current assets 274,300 249,800 Equipment 141,000 132,000 Eggegzprecntmn (35 , 500) (1? , 500) Total assets $380,200 $3541300 Liabilities and Equity Accounts payable $ 42,000 $ 55,500 Wages payable 3,300 18,400 Income taxes payable 5,100 7:200 Total current liabilities 54,800 81,100 Notes payable (long term) 4?,000 77,000 Total liabilities 101,800 158,100 Equity Common stock, $5 par Value 254,000 173,000 Retained earnings 24,400 291200 Total liabilities and $380,200 $364,300 equity IKIEAN INC. Income Statement For Year Ended June 30, 2017 Sales $763,000 Cost of goods sold 428,000 Gross profit 335,000 Operating expenses Depreciation $35,600 expense Other expenses 84,000 Total operating 159,600 expenses 175,400 Other gains {losses} Gain on sale of an" i \"mand- 3,700 Notes payable (long term) 47 , 000 77 , 000 28 Total liabilities 101 , 800 158, 100 points Equity Common stock, $5 par value 254,000 177 , 000 Retained earnings 24 , 400 29, 200 Total liabilities and equity $380 , 200 $364, 300 eBook Hint IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $763, 000 Ask Cost of goods sold 428 , 000 Gross profit 335 , 000 Operating expenses Print Depreciation expense $75 , 600 Other expenses 84, 000 Reference Total operating expenses 159 , 600 175 , 400 Other gains (losses ) Gain on sale of equipment 3, 700 Income before taxes 179 , 100 Income taxes expense 45 , 590 Net income $133 , 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 $74,600 cash. d. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 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. Exercise 12-11 Part 1 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.)
