IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets $ 87,500 65,000 63,800 4,400 220,700 124,000 (27,000) $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment $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 $ 25,000 6,000 3,400 34,400 30,000 64,400 30,000 15,000 3,800 48,800 60,000 108,800 Equity Common stock, $5 par value Retained earnings 220,000 33,300 160,000 24,100 $317,700 $292,900 Total liabilities and equity IKIBAN INC Income Statement For Year Ended June 30, 2017 $678,000 411,000 267,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses $58,600 67,000 Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes 2,000 143,400 43,890 Income taxes expense $ 99,510 Net income Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash b. The only chang 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 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. affecting retained earnings are net income and cash dividends paid. IKIBAN, INC Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities $ Net income 99,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 58,600 (2,000) Gain on sale of plant assets Increase in accounts receivable (14,000) Changes in current operating assets and liabilities $ 142,110 Cash flows from investing activities Cash flows from financing activities 0 $ Net increase (decrease) in cash 142,110 Cash balance at prior year-end $ 142,110 Cash balance at current year-end