IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets 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 liabilities and equity $103,300 75,500 70,800 51,000 58,000 97,000 6,800 212,800 122,000 5,100 254,700 131,000 30,500) (12,500) $355,200 $322,300 $ 32,000 6,700 4,100 42,800 37,000 79,800 40,500 16,400 5,200 62,100 67,000 129,100 167,000 26,200 $355,200 $322,300 234,000 41,400 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $713,000 418,000 295,000 $65,600 74,000 Depreciation expense Other expenses Total operating expenses 139,600 155,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,700 158,100 44,590 $113,510 For Year Ended June 30, 2017 Cash flows from operating activities 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 Cash flows from investing activities 0 Cash flows from financing activities 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 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