IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 AssetsS Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total 1iabilities and equity $ 97,300 61,000 68,000 112,000 8,800 249,800 132,000 17,500 $380,200 $364,300 90,500 80,800 6,100 274,700 141,000 35,500 $ 42,000 55,500 18,400 7,200 81,100 47,00077 000 158,100 7,700 5,100 54,800 101,800 177,000 29,200 $380,200 $364,300 254,000 24,400 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $763,000 428,000 335,000 Depreciation expense $75,600 84,000 Other expenses Total operating expenses 159,600 175,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,700 179,100 45.590 $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. IKIBAN, INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Cash received from customers Cash paid for operating expenses Cash paid for income taxes Cash paid for inventory Net cash provided by operating 0 activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash paid for dividends Cash paid to retire notes Cash received from stock issuance Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0 0 0